In 2000, Japan was Asia’s largest exporter of electrical components, but by 2018 it was ranked 8th.
What might explain this change?
1 )
Japan has a lower opportunity cost in electrical component production than its Asian competitors.
2 )
Japan has experienced greater deflation than its Asian competitors.
3 )
Japan has imposed tariffs on the import of electrical components from its Asian competitors.
The Japanese Yen has appreciated against the currencies of its Asian competitors.
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