When Japan has a trade deficit, what is basically true? A)
Japan's imports exceed its export.
B)
Japan has a net financial capital outflow.
Japan has a lower GDP than its trading partners.
D)
Japan has a higher savings rate than other countries.

Trade is referred to as the exchange of goods and services between two countries or nations. The trade can be between the domestic countries or the between the two international boundaries.  

The correct answer in the context of Japan is A)Japan's imports exceed its export.

When a country's imports exceed its exports, it is said to be in a trade deficit. It's a negative trade balance. The country faces higher imports when it has a low growth rate and is unable to produce the products in the country itself. This also results in the decline in the value of the currency of the importing country as it is being available very easily to the other country. This depreciates the currency value and worsens the trade relationship with the other countries.

In a conclusion, when Japan has a trade deficit, it means that its imports outnumber its exports.

To know more about the trade deficit in Japan, refer to the link below:

link

A)Japan's imports exceed its export.

Explanation:

Trade deficit is basically when the import of a country is more than its exports. It is a negative balance of trade.

Therefore, when Japan is said to have a trade deficit, it means that its imports exceeds its imports.

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