In its balance of payments accounts, Japan has traditionally run a deficit in services. Trade in services includes transportation (freight and passenger fares), insurance, travel expenditures, royalties, licensing fees, and income from investments. The deficit in services rose steadily from US$99 million in 1960, to nearly US$1.8 billion in 1970 and to more than US$11.3 billion in 1980 which can be attributed to rising royalty and licensing payments for Japan's acquisition of technology from other industrial countries and to rising deficits in the trade-related services of transportation and insurance. The transportation deficit rose after the 1960s, as rapidly climbing labor costs made Japanese-flag vessels less competitive, leading to greater use of foreign-flag carriers (including many flag of convenience vessels actually owned by Japanese interests). Beginning in the late 1970s, however, rapidly growing overseas investments began to increase the inflow of investment income. The investments themselves are part of capital flows in the balance of payments, but repatriation of earnings on those investments is part of the services account. From a small surplus of US$900 million in 1978, the balance on investment income (earnings from abroad minus the earnings of foreigners in Japan) grew to US$21 billion by 1988. The tremendous growth in Japanese investments abroad had not been matched by any such growth of foreign investment in Japan. Despite the rapid growth in Japan's investment income surplus, the country's total services account remained in deficit in the 1980s. Offsetting the rising surpluses in investment income were an enormous jump in the deficit on overseas travel and purchases by Japanese citizens while abroad. The net balance on passenger transportation deteriorated from a net deficit of US$1.3 billion in 1985 to a net deficit of US$3.7 billion by 1988, and travel (purchases of goods and services by individuals while abroad) increased from US$3.7 billion to US$15.8 billion over the same short time. This burst of overseas travel and spending came as the movement in the exchange rate made foreign travel more attractive to the Japanese. It also reflected the rising perception among Japanese consumers that prices for a wide range of manufactured items were substantially lower abroad than at home, giving them an incentive to purchase these items while out of their country. By the end of the decade, the number of Japanese taking overseas trips approached 10 million annually. One other nonmerchandise transaction is included in the current account balance—net transfers.