For developing countries such as Mexico and Brazil,severe economic problems in the 1980s were caused by:

Question

Quizplus · Accepted Answer

The severe economic problems faced by developing countries such as Mexico and Brazil in the 1980s were primarily caused by a fall in the world demand for products produced by these countries. The reduced demand resulted in a decline in export earnings, which led to a balance of payments crisis, high levels of external debt, and inflationary pressures. Other factors such as high prices of basic raw materials and other commodities, low real interest rates in the United States, and high levels of income and imports for the United States may have exacerbated the economic problems, but they were not the primary cause.

For Developing Countries Such as Mexico and Brazil,severe Economic Problems