Problem
Excessive external trade deficits
Incidence:
[Industrialized countries] The USA's trade deficit in 1986 was over US$170 billion making it the largest debtor nation in the world. In June 1989, the United Kingdom's trade deficit widened to US$3.1 billion. In 1989 the former Soviet Union recorded a trade deficit of £3.35 billion.
[Developing countries] Developing countries' efforts to reduce their trade deficits took place in an environment in which the prices of the majority of primary commodities had moved against them since the late 1970s.
Broader Problems:
External debtImbalance in international trade patterns Aggravates:
External debt crisisDecline in import capacityOrganizational empire-buildingDeterioration in external financial position of countries Strategies:
Balancing payments Related UN Sustainable Development Goals:
Problem Type:
D: Detailed problems Date of last update
17.10.2021 – 08:27 CEST