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Explanation of trade deficits - LEDCs and MEDCs

A short animation explains raw materials are usually the least profitable products to trade. The concept of trade balance and the term 'trade deficit' are explained. While trade is essential for economic growth, most poor countries export cheaper raw materials and import high value manufactured goods from wealthy nations. Concludes with a definition of the terms LEDC - less economically developed country - and MEDC - more economically developed country.

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1 minute