Japanese Electronics Multinationals and Strategic Trade Policies

Abstract

Japanese electronics firms have grown into formidable competitors on world markets but have only seriously expanded their manufacturing presence world-wide since 1985. This volume probes the unique features of Japanese multinationals, and shows how trade policies in the United States and the European Union have shaped the rapid internationalization of Japanese firms in the late 1980s and early 1990s. It will be essential reading for anyone who wants to understand the operation of Japanese multinationals. The volume provides original insights into the determinants and effects of the internationalization of Japanese electronics firms. Theories of strategic trade policy and multinational enterprise are developed and applied to the experience of Japanese firms. Empirical analysis employs a wealth of Japanese language information on the Japanese electronics industry to explore at the micro-level the role of keiretsu in the decision to invest abroad, the relationship between trade barriers, foreign investment, and export substitution, components sourcing by Japanese subsidiaries abroad, overseas R&D, and investment strategies in the European Union. Major lessons are drawn from European antidumping measures and local content rules targeting Japanese electronics firms, which instead of protecting 'European Champions' have helped to develop a Japanese-owned electronics industry in the EU.