Question

True or false: japan generally runs a significant trade surplus because of the structural barriers against imports into japan

Answer 1

The statement, Japan generally runs a significant trade surplus because of the structural barriers against imports into Japan, is true.

As Japan's savings rate is high relative to Japan's domestic investment, Japan generally runs a trade surplus. Thus, the result is high net capital outflow which is matched by high net exports, resulting in a trade surplus.

Japan's overall trade surplus is the result of its exports in the scientific and optical equipment, rubric machinery, semiconductors, electronic parts, and telecommunications equipment. Now the current account surplus has been shrinking for four fiscal years in a row.

Hence, in 2019, Japan reported the biggest trade surpluses with different countries.

To learn more about trade surplus here:

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