ABSTRACT
The most striking thing about global patterns of trade and foreign direct investment in electronics, as in most other industries, is the overwhelming dominance of the advanced economies as destinations–even allowing for the runaway industry and newly industrializing country phenomena. This reflects not only the technical sophistication of the product but the need, strongest in the computer and telecommunications sectors, to interact with customers. Japan’s conquering of world consumer electronics markets is reflected in the fact that it is the only advanced country to have consistent employment growth in the sector, while Europe and America have suffered heavy losses. Taking electronics as a whole the weakness of the European countries can be seen, together with the vigour of growth in South Korea. The thickets of collaborative deals between electronics firms, often of different nationality, bear witness to the struggle for survival in an industry undergoing both rapid internationalization and technical change.
