Answer: Borrowing in a country with low interest rates and investing in a country with higher returns
Notes: The yen carry trade became notable after the Bank of Japan raised interest rates and cut bond purchases, causing the yen to strengthen. Investors reacted by unwinding their positions to prevent losses, which led to a selloff in US tech stocks and affected global markets, including Asia. A carry trade involves borrowing in a country with low interest rates and investing in assets in a country with higher returns.
