This chapter describes the expansion of Japanese investments into the European consumer electronics industry. A number of multinationals in this sector have set up modest European marketing sales, and distribution operations by the late 1960s, but direct investments in regional manufacturing plants remained miniscule and overall FDI levels in this sector quite modest. To examine the nature of European policies in this sector, this chapter analyzes the community's response towards a number of major examples of the Japanese consumer electronics challenge. To place this analysis in context, critical aspects of the European consumer electronics industry are outlined. This chapter also explores the character of Japanese strategies and European policies in three key sectors of the industry in which Japan has invested heavily: color televisions, videocassette recorders, and compact disc players. Finally, this chapter contrasts European and American policy approaches towards Japanese competition in this sector.
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