Britain's Changed Position in World Economy
Great Britain, for more than a century one of the world's great creditor nations, is now a debtor country. Heavy foreign borrowing during World War I did not rob Britain of her creditor position. In the present war, however, she has had to liquidate many of her foreign investments and incur a large new foreign debt. Obligations to other countries now exceed the assets in Great Britain's international portfolio.
Exports in Great Britain's Balance of Payments
Liquidation of the foreign investments involves more than loss of the income which the investments produced. It will deprive postwar Britain of the wherewithal to pay for a substantial share of that country's normal surplus of imports over merchandise exports. Reduction of revenue from shipping ...