International Production Networks And Changing Trade Patterns in East Asia: The Case of the Electronics Industry
21 Pages Posted: 16 Mar 2016
Date Written: March 15, 1998
The concept of an "international production network" captures the spread of broader systems of international production which cut across different stages of the value chain but which may, or may not, involve ownership of equity stakes. The concept allows us to analyze the globalization strategies of any particular firm with regard to the following four questions: Where does the firm locate the various stages of the value chain? To what degree does a firm rely on "outsourcing", and hence what is the relationship between that and the firm's internal production activities? To what degree is control over transactions exercised in a centralized or in a decentralized manner? How do the different elements of these networks hng together? These ideas are applied to the trade links in electronics between firms located in the USA or Japan and countries in east Asia.
Keywords: international trade; international investment; economic development; business strategies; networks; Japan; USA; Asia; electronics industry
JEL Classification: F14, F23, F40, L63
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