The Persistent U.S. Trade Deficit with Japan Is

The persistent U.S. trade deficit with Japan is

A) surprising because one would expect that bilateral trade between two countries with flexible exchange rates would be in balance.
B) surprising because the Japanese are high cost producers of many goods that are purchased in large quantities by U.S. consumers.
C) not surprising because there is no reason why bilateral trade between two countries should be in balance.
D) proof that the trade practices of the Japanese are unfair toward the United States.