Because of the Relative Rise in Local Production Costs Brought

question 7

Essay

Because of the relative rise in local production costs brought about by the appreciation of the yen, many Japanese corporations have decided to transfer production abroad. What should be the immediate and future impact on the Japanese balance of payments?

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Definitions:

Contract Law

The legal framework that oversees the creation, execution, and understanding of contracts between individuals or entities.

Business Person

An individual who operates a business or enterprise, taking on greater than normal financial risks in order to do so.

Internet Transactions

The buying and selling of goods and services or the transmitting of funds or data, over an electronic network, primarily the internet.

Offer

An offer from one entity to another aimed at establishing a legal contract if accepted.