(I) The balance of payments has recently been a serious problem particularly in Eastern Europe. (II) The late 1950s and the early 1960s saw a decline in British competitiveness. (III) As a result the British share in world exports of manufactures fell steadily. (IV) On the other hand, there was a rapid increase in imports of manufactured goods. (V) Consequently, the balance of payments deteriorated, and the country was heading towards a major economic crisis.