February brought a shocking piece of news to Japanese people. They learned that their country has become a net importer of consumer electronics–the very goods it had once exported to every corner of the globe. It had already become clear previously that Japan had become an importer of large household appliances, such as washing machines and refrigerators, but statistics for 2010 show that Japan has also become a net importer of digital consumer goods, such as flat-screen TVs. This is not due simply to an increase in imports of goods from overseas. A major underlying factor is that Japanese consumer electronics makers have shifted their production offshore. One manifestation of this can be seen in the electronics megastores in Tokyo’s Akihabara district. Many among the increasing number of Chinese tourists to Japan look forward to shopping at stores in this district. But since last ... ... [Read more]