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Korean electronics firms have been aggressively involved in learning and knowledge accumulation over the past two decades. Their consumer products, including color television sets (CTVs), video cassette recorders (VCRs), and microwave ovens, were able to remain competitive in the low-end segment of world markets until the late 1980s, generating the cash flow needed to support development of more advanced technologies. In recent years, however, Korean firms are meeting increased competition, particularly from Japanese producers that have recovered their competitiveness by investing in low-cost offshore production...
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