--%>

Foremost causes for Japan current account surpluses

On the contrary to the U.S., Japan has felt continuous current account surpluses. What could be the foremost causes for these surpluses? Is it desirable to have continuous current account surpluses?

Japan's continuous present account surpluses may have reflected a weak yen & high competitiveness of Japanese industries. Massive capital exports through Japan prevented yen from appreciating more than it did. At the means time, foreigners' exports to Japan were hampered through closed nature of Japanese markets. Continuous present account surpluses disrupt free trade by promoting protectionist sentiment in deficit country. This is not desirable especially while it is brought regarding by the mercantilist policies.

   Related Questions in Financial Management

  • Q : Evaluate the limitation of financial

    the limitation in the process of financial planning

  • Q : Who were solved out stochastic spot

    Who were solved out stochastic spot rate models problem?

  • Q : Advantages of investing by

    Describe the advantages of investing by international mutual funds? The advantages of investing by international mutual funds comprise: (1) save transaction/information costs,

  • Q : Theory of comparative advantage and

    How does the theory of comparative advantage associate to the currency swap market?Name recognition is very important in the international bond market. Without it, even a creditworthy corporation will determine itself paying higher interest rat

  • Q : Explain merits and demerits of Mr

    Mr. Ross Perot, a former Presidential candidate of the Reform Party, that is a third political party in the United States, had objected strongly to the creation of the North American Trade Agreement (NAFTA), that nonetheless was inaugurated in the year of 1994

  • Q : Explain the Simulations tool in

    Explain the Simulations tool in Quantitative Finance.

  • Q : Forecast the future exchange rates

    Researchers found that this is very hard to forecast the future exchange rates more precisely than the forward exchange rate or the current spot exchange rate. How would you interpret this?This implies that exchange markets are informationally e

  • Q : Do option traders use the Black–Scholes

    Do option traders use the Black–Scholes formula?

  • Q : Dimensions of income statement what are

    what are the time dimensions of time income statement, the balance sheet, and the statement of cash flow?

  • Q : Cross-list equity shares on more than

    Explain any benefits you can think of for any company to cross-list its equity shares on more than one national exchange?A MNC that has a product market presence or manufacturing facilities in many countries may cross-list its shares on the exch