This study is an exploratory study on the foreign direct investment for consumer electronics industry focusing on the A/V industries. The objective of this study is to provide effective foreign direct investment of declining A/V industries.
For this purpose, this study investigate five cases of overseas factories of A/V industries. In spite of the methodological limitation, this study provides the following implications:
First, for the case of trade regulation of developed country, we must have cost advantage through international division of labor.
Second, for the case of using cheap and plentiful labor of underdeveloped country, we must understand political and legal regulations.
Third, for the case of market penetration to rapidally growing developing countries, it is strongly recommended to invest prior to competing company's enterance to the market.
Finally, declining industry itself affect negative to the profits of company. In conclusion, it is effective for A/V industries to research latent market actively. And related diversification like DVD and CD-Rom must be driven more actively.
