This article states that Japan is in the middle of a trade surplus gaining 95. Economists believe that because of September 11th, shutdowns of key ports especially in the U.S. have caused major contributions shrinking the trade gap.
II. Summary.
The article goes on state that because of these key ports closing, billions of dollars of trade were lost, and a major trade surplus has occurred. It states that exports were up to 14.3 percent from a year earlier, and imports were up to 3.9 percent. This shows clearly the gap between Japans exports and imports. Forecasters are hoping that a slow U.S. economy, and a stronger yen point to a weaker surplus in the months ahead. Although this problem is still occurring it shows in monthly forecasts that since a peak high in July, forecasts are showing a declining trend. It states that Japans exports have been slowing, pushing towards a more steady economy. It also goes on to say that net exports made a negative contribution to japans economic growth in the middle months of July-September quarter for the first time in a year, and that many economists expect this trend to continue. Forecasters are hoping that as winter sets in, the pressure on policy makers will help resolve this issue of economic recession. It also states that in October, forecasters showed signs of economic recovery due to inflation.
III. Key concepts.
Some of the key concepts stated in this article. First, trade surplus, which we have discussed, is when nations exports of goods exceed its imports of goods, and a trade deficit is vice versa. Also, in our book, we have shown Japan currency (yen) compared to the American dollar. Also, exports and imports, which deal with national trade. Also, net exports which is the difference between exports and imports showing a negative balance. Lastly it states that Japans recovery will partly due to deflation, which is lowering prices rather than inflation, which is a rising in prices.