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A constitutional monarchy, with an emperor as ceremonial head of state, Japan is located off the east Asian coast in the north Pacific. It comprises four principal islands and more than 3000 smaller islands. Sovereignty over the most southerly and northerly islands is disputed with China and the Russian Federation respectively. The terrain is mostly mountainous, with fertile coastal plains; over two-thirds is woodland. The Pacific coast is vulnerable to tsunamis – tidal waves triggered by submarine earthquakes. Most cities are located by the sea; Tokyo, Kawasaki, and Yokohama together constitute the most populous and heavily industrialized area. Hokkaido is the most rural of the main islands. Japan's power in the global economy, with annual trade surpluses exceeding $100 billion and massive overseas investments, is recovering from a series of bad debt crises, bankruptcies in the financial sector, and two recessions since the early 1990s.