Examine EU _ – _ Japan trade figures in recent years. In every year since 1958 (with the exception of 1961) the main European countries have experienced deficits on merchandise trade with Japan....

exception of 1961) the main European countries have experienced deficits on merchandise trade with Japan. Comment on the extent and structure of the trade imbalance. Compare this imbalance with EU trade balances with other countries and regions. In the light of your empirical findings, should Europe’s merchandise trade deficit with Japan be a cause for concern? (For relevant data, see World Trade Organisation,
International Trade: Trends and statistics, or Eurostat trade

figures.)