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Japan's trade deficit increases in October as increase in imports exceed increase in exports to the US and China. Over the past years, weakening yen has helped promote exports, but also increases the cost for imports. The increase in cost for imports, such as crude oil, helped widen trade deficit. This shows the relationship between the current account and the exchange rate. Japan is currently going through a balance trade of goods and services deficit. This results in downward pressure on the exchange rate of the currency as there is an increase in the supply of yen due to increase in imports.

This article focuses on the trade deficit of Japan. Japan's trade deficit nearly doubled in October, as growth in imports outpaced robust increases in exports to the U.S. and China, the Finance Ministry reported Wednesday. There are several factors that led to trade deficit. Firstly, the weakening of the yen over the past year had its significant impact on imports and exports. After meltdown of the nuclear power plant in 2011, Japan has faced loss of the generation capacity, therefore forcing Japan to import natural gas and oil. Overall, weakening in the Japanese yen over the past year has helped exports, but it has also increased the cost of imports.However, the exports are not as stable as they could be. Slowdown in economic growth of China has led to decrease in demand for Japanese exports.Overall the article talks about the details of the trade deficit of Japan.

This article is of great interest to us as it demonstrates a very recent development in a relationship that we discuss constantly in economics, this being the trade relationship in between China and the United States. In the article we learn that the notorious trade deficit between the two nations actually widening more than was expected, and the numbers pertaining to the deficit are stunningly large. 

Washington - For all the growth in domestic manufacturing and exports, the ballooning U.S. trade deficit continues to be a thorn in the side of the U.S. economy. The Commerce Department said Thursday that the nation's trade deficit widened to a larger-than-expected $51.8 billion in March, up from $45.4 billion in February.

The U.S. trade deficit widened slightly in August as exports slipped, suggesting trade will probably not be much of a boost to growth in the third quarter.

This article represents the perfect example of how the balance accounts aren't equaling out! The article states that the the US debt has increased due to a decrease in exports. What this tells us is that the current account has decreased and therefore has further de-equalized the situation. Therefore as the article states the debt has grown by 0.4% to $38.8 billions dollars. Telling is us that the capital and current accounts arent balancing eachother