If Japan exports more than it imports,
A) Japan's net exports are negative.
B) Japan is running a trade deficit.
C) Japan's net capital outflow must be positive.
D) Japan's net capital outflow must be negative.

Question

Quizplus · Accepted Answer

When Japan exports more than it imports, it has a trade surplus, meaning net exports are positive. This implies that Japan's net capital outflow must be positive, as the country is investing more abroad than it is receiving from foreign investments.

If Japan Exports More Than It Imports