The purpose of this research is to examine the interna tional trade between Sweden and the United States (US), and to review the balance of payments positions of the two countries.The examination of the bilateral trade is presented first, and is followed by the balance of payments review.
The balance of international trade for a country is "the difference between its exports and its imports" (Lederer, 1982, 55). Within this context, a country has an overall balance of trade, as well as separate trade balances with each other coun try with which it trades.
In a narrow definition, exports and imports are considered to be only tangible goods. A broader definition, however, also covers all intangible services.
The US has had a merchandise trade (exports and imports) deficit throughout the decade of the 1980s (the last surplus was recorded in 1975), with annual deficits in excess of US$100 billion commencing in 1984, and in excess of US$150 billion commencing in 1986. Better performance in the services sector kept the overall US trade balance positive until 1983. Commencing in 1986, however, the overall annual trade deficit
of the US has exceeded US$100 billion, as services sector imbalances grew. Although the American international trade situation has generally improved since 1985, the trend is such that years, perhaps decades, will be required, before the US again reaches an equilibrium in international trade.
In the late 1970s and early 1980s, Sweden recorded small international trade deficits (Paxton, 1989). These trade defi cits were the result of high cost petroleum imports. From 1983 onward, Sweden has recorded international trade surpluses.
Bilateral trade between Sweden and the US is relatively modest, whether it is considered from the American perspective or from the Sewdish perspective. Actually, considered from the American perspective, it is miniscule. As a proportion of gross national product (GNP)...