Furthermore, with the increase in travel overseas, Japanese consumers have become conscious of the difference between domestic prices and those abroad. These factors, combined with the progress of deregulation, have created a situation where domestic industries which used to be protected from competition find it increasingly difficult to secure profits just by raising prices as they used to do.
Thus, the traditional growth mechanism whereby even low productivity industries could maintain a certain level of profitability has apparently become unsustainable. Since the trend toward globalization is irreversible, it seems that time alone will not resolve this third factor responsible for declining profitability. Hence, it should be regarded as one of the most difficult structural problems facing the Japanese economy.