Question

In contrast to us, japan has recorded continuous current account surpluses. What could be the main reason for the surpluses?

Answer 1

Answer:

Japan's continuous current account surpluses may have reflected a weak yen and high competitiveness of Japanese industries. ... Continuous current account surpluses disrupt free trade by promoting protectionist sentiment in the deficit country.

Answer 2

Massive capital exports by Japan prevented yen from appreciating more than it did. At the same time, foreigners' exports to Japan were hampered by closed nature of Japanese markets. Continuous current account surpluses disrupt free trade by promoting protectionist sentiment in the deficit country......