Last one... I've done so many that I simply mind-boggle as of now!
Until the early 1980's, Japan required its large insurance companies to invest all of their vast holdings in Japanese securities.
At the prompting of the U.S. , Japan relaxed the restrictions and allowed the companies to invest anywhere in the world.
What effect do you think this had on the yen/dollar exchange rate and the trade balance between the two countries?
0 answers