Problem
Instability in high-technology manufacturing industries
Other Names:
Instability in the electronics industryOvercapacity in the computer industry
Incidence:
The EEC/EU's trade deficit in electronics doubled over the period 1987 to 1990, to reach 31 billion ecus. One explanation is not overcapacity but inefficiency as a result of exclusive procurement contracts (governments account for 15% of computer sales) and government subsidies, which means companies were slow to spot developments in private-sector markets. Pricing policy has also been questioned. High prices in Europe compared with the USA mean demand is sluggish and there is little incentive for product development. Other analyses highlighted lack of cheap capital, an inability to integrate several businesses into single firms, and poorly selected programme support areas.
Broader Problems:
Restricted growth in export marketsInstability of trade in miscellaneous manufactured articles Narrower Problems:
Computer development trade warComputer development trade war Related Problems:
Electronic waste Subject(s):
Economics → Resource utilizationIndustry → Industry
Industry → Manufacture
Informatics, Classification → Informatics
Societal Problems → Instability
Technology → Electronics
Technology → Technology
Related UN Sustainable Development Goals:
Problem Type:
E: Emanations of other problems Date of last update
17.09.2019 – 16:52 CEST