ABSTRACT

The World Bank has adopted the term Less Developed Countries (LDC) and it separates these into low income, lower middle income, upper middle income and high income oil exporters. Due to the immense area that it incorporates, it is less dependent on trade than many other LDCs or newly industrializing countries, and its large primitive region holds down some national economic averages. Growth is concerned, it contributes to a slowing down among LDCs because imports are the main determining factor for world trade, and the LDCs must try to capture their share of global trade volume. Taiwan faces political instability in its relationship with the People’s Republic of China; the burden of servicing extraordinarily large debts continues to be borne by Brazil, and South Korea faces a hostile northern border. The United States incurred an unusually large trade deficit which was reflected in strong export-led growth by a number of Pacific Basin countries, including Taiwan, South Korea and China.