The California economy produces more goods and services annually than Canada. And with each passing year, its prosperity becomes increasingly linked to its success in the global economy. As the state approaches a new millennium, it faces challenges that will help determine whether it will become an even bigger economic force in the world or whether it will fade amid mounting problems at home. Financial Times correspondents, based both here and in capitals abroad, give their impressions on the California economy through a special lens.
California has attracted Korean immigrants for decades, and investment has followed suit.
The state accounts for 40% of total South Korean investment in North America, or about $1.4 billion, twice the amount that New York, its nearest competitor, has attracted, according to South Korea's central bank.
But that may change as the big South Korean industrial groups abandon California, with its high land and labor costs, in favor of other states for manufacturing sites.
Neighboring Oregon is likely to surpass California soon in terms of South Korean investment. Hyundai Electronics recently announced that it will build a $1.3-billion semiconductor plant in Eugene because of relatively cheap land and tax incentives.