Farmers may have a positive view of this in the short term, but the national economy has little tolerance for long inflationary periods. When policies are implemented to restore price stability, agriculture has a difficult adjustment to make. In the dynamic world of global trade, it is crucial to understand the major influences on foreign demand. These opportunities come with risks because of the volatility in the international market. Fluctuations in world economic performance influence demand for U.S. exports.
Countries can sustain higher levels of imports when their incomes rise.
The growth rates of all nations are interrelated through the effects of each government's macroeconomic policies. The debt crisis that occurred in many developing countries in the early 1980s is an example. During this period, the United States pursued a tight monetary policy to combat domestic inflation. This policy helped drive up world interest rates, triggering a world credit crunch, which caused a financial crisis and depressed growth in many debt-ridden developing nations. Conversely, it can be said that the unsustainable borrowing of the nations that experienced this debt crisis slowed the growth of the United States when U.S. exports decreased in the mid-1980s.