USA HISTORY

Detailed explanation-1: -Throughout its history, Japan’s greatest economic challenge has been its [reluctance to engage in trade OR access to productive resources]. Containment of Communism/ Korean War 20.

Detailed explanation-2: -Supply chain issues, rising labor costs, and political issues have highlighted problems with Japan’s reliance on China as a base for its manufacturing investments. With a low birthrate and aging population, Japan’s social security system is under strain and is suffering from labor shortages.

Detailed explanation-3: -Now Japan faces a deflationary spiral. As prices fall, households and firms postpone purchases of durable goods in anticipation of lower prices in the future. Deflation contributes to high real interest rates, which in turn impede investment.

Detailed explanation-4: -From the 1960s to the 1980s, Japan achieved one of the highest economic growth rates in the world. This growth was led by: High rates of investment in productive plant and equipment. The application of efficient industrial techniques.

Detailed explanation-5: -By the late 1980s, the Japanese economy experienced an asset price bubble of a massive scale. The bubble was caused by the excessive loan growth quotas dictated on the banks by Japan’s central bank, the Bank of Japan, through a policy mechanism known as the “window guidance".