Japan posts a rare trade deficit

In August, the Japanese trade gap slipped into the red. Japan is on the edge of a recession.
The reasons for the failing economy are the falling export and domestic demand. Because of the rising prices of oil, coal and natural gas, the Japanese governement has to pay more for the products they have to import.
The other problem they have is that their export doesn't grow proportionate with the cost of the import, so they lose a lot of money. The reason for that is the falling demand of Japanese cars. And it isn't Japan only that have problems with their economy but also overseas.It was since 1980 that Japan has have so much economical problems.

I think the only solution for the problems that Japan and the overseas areas have is to reduce the price of the oil and the raw materials in general so that the imports costs will going down
The governements of the US and the European countries could raise the purchasing power of the people so that there (probably) will be more demand of Japanese cars and the export of Japan will raise. Only the governements can help Japan, they have to take measures to help Japan and the world in general.

I also think that the problems, that Japan has, also hit other countries. Especially now because the financial world become weaker and weaker and soms people have already lost their money so I personaly think that the economical crisis doesn't stay only in Japan but will spread out.




source:
http://news.bbc.co.uk/2/hi/business/7635265.stm