Managing the New Phase in the International Division of Production and Japan Enterprises : An Outsourcing of the Electronics Industry and Hollowing-out Phenomena

Abstract

Japan electronics industry had established subsidiaries abroad by foreign direct investment, had been offshoring the production to counter a rise in the exchange rate of the yen and an import regulations. Offshoring, inducing the effect of intermediate goods export had brought to export electronic parts and devices consisting of key components, and let activation export despite the appreciation of the yen in progress, and industrial development has been constructed. Offshoring to overseas in the electronics industry is to reduce domestic employment temporarily, did not cause an industrial hollowing-out phenomenon, it is a dominant conclude in the previous studies. However, recent electronics industry tends to overseas production bases closed, production stops, to outsource the production. In addition, a trend overseas transfer of the production of electronic components and devices can accommodate appreciation for, or a divisional risk of the supply chain avoidance of astounding by the earthquake, and a trend to overseas transfer of production of Japan was left to electronics industry in recent correspondence to the phenomenal appreciation, electronic components and devices. Electronics companies are now reducing the domestic employment, improvement in profitability. Japan electronics industry has faced a new stage in the international division of production, increasing domestic employment while outsourcing abroad cooperately. Japan electronics industry shall ensure to migrate to the new forms of international business as well as a new basis for growth industry, as