ABSTRACT
The Japanese electronics industry is the most important contributor to Japanese Direct Foreign Investment (FDI) in manufacturing with a share of 25% of cumulative FDI as of March 1991 (Ministry of Finance 1991). The electronics industry is also a major exporter, responsible for 27% of exports to the European Community (EC) and 22% of exports to the US during 1991 (JETRO 1992). In terms of the relative importance of foreign production, the industry ranks second after the transport machinery industry: according to the latest MITI survey among Japanese Multinational Enterprises (MNEs), sales of foreign production subsidiaries amounted to 11.4% of production in Japan in Fiscal Year 1990 (ending March 1991); this foreign production ratio stood at 12.6 for the transport machinery industry (MITI 1992).
