ABSTRACT
Labour intensity and the search for new solutions both by public and private actors have caused substantial delocalization in the electronics industry. Active delocalization in the electronics industry happens in the form of Foreign Direct Investments (FDI), outsourcing and foreign trade. FDI has effects on both host and home economies. There has been less research on the delocalization of the electronics industry in Europe and especially in the enlarged European Union (EU). The 2004 enlargement of the EU created a totally new situation for the electronics industry. Two basic functions of electronic devices are the controlling and processing of data and the conversion and distribution of electric power. Supply chains in telecommunications present an example that is different from those of consumer products. The electronics industry in Central and Eastern Europe faced a tough transition period from the end of the 1980s. Enterprises faced the decision to reprofile their activities or cease to exist.
