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Over the last decades, technology hierachy among Pacific Basin countires could be exemplified by the rapid growth of intra-industry trade and the spread of segmentation of production network across national boundaries which is part of the process described as integration. The reason for this is because, several technological develpments since last decades or so facilitated the expansion and integration of intra-industry trade, not only among OECD countries, but aslo between industrialized and developing countires; First, progress in transportation and communication systems has substatially reduced the transaction costs of factor mobility across national boundaries. Secondly, "progressive simplification of set engineering" (Dicken 1992, p. 323) enabled the consumer electronic industry to cut down the number of componet needed. Thirdly, the wide spread automation of production process standardizes the skills of labors needed in the assemble stage of productions throughout the globe. Therefore, it is fairly easy for the firm to physically separate the stages of production and or to decompse the production processes in accordance with production characteristis at various production stages. More precisely, globalization exists p