From: kbalasub@sparcle.oracle.com (Kris Balasubramanian)
Newsgroups: misc.invest
Subject: Re: ***(NEW EDITION) JAPANYES;VERY POPULAR
Date: 16 Dec 92 18:06:13 GMT
Reply-To: kbalasub@sparcle.oracle.com
Organization: Sun Microsystems, Inc.
X-Disclaimer: This message was written by an unauthenticated user
              at Oracle Corporation.  The opinions expressed are those
              of the user and not necessarily those of Oracle.

In article Fqx@austin.ibm.com, alan@auntbea.austin.ibm.com (Alan R. Weiss) writes:
>In article <ByxuzC.BI9@cs.columbia.edu> olasov@cs.columbia.edu (Benjamin Olasov) writes:
>>In article <1992Dec8.063743.6271@netcom.com> strnlght@netcom.com (David Sternlight) writes:
>>
>>>To take another example, if Japan underprices (dumps) product in violation
>>>of GATT just long enough to put your domestic industry out of business,
>>>it's irrelevant that their "real" costs are higher than yours.
>>
>>To be fair, American companies also engage in this practice when it
>>serves their purposes - the difference is that it's called competitive
>>pricing when we do it.  Moreover .....
>
>
>You have failed to cite specific examples.  Therefore, how can
                                            ^^^^^^^^^^^^^^
>anyone evaluate the merits of your argument, Ben?
>
I have seen and even used certain dumping, like Gillet sometime back sold its product at certain price 'A' and gave a mailin rebate of 'A'. The product is totally free! I have seen other Cosmetics also do this.

Ford is selling its Escort three different models, Hatchback, sedan and wagon all
at the same low price.

Chrisler is selling its minivan a bigger size at the price of a smaller size.
It has in the past financed at zero percent, which is same as discounting all the
interest.

Ofcourse you will comeup with some reasoning for this, but I think this is same as dumping..

When    Mass manufacturing technic was introduced by US companies, it bancrupted a lot of small enterprises by flooding the goods in the market all around the world
with free market jargon.. US enjoyed the success and nobody cried foul. But when another Country beat the US in competition all cry babies are crying foul, dumping
unfair trade practises etc.
  
 US also subsidises a lot of Farmers and industries. When chrysler was going under
why did the Govt come to the rescue instead saying that is part of Free enterprise?
I would say that is also subsidising. 
I have no problem in Govt coming to the rescue. What I say is this. Govt should have 
a role in protecting the industries as they do to their people, because industries
are also tax paying entities. So dont cry foul when other countries do the same.
>

>>, I'm not convinced there's anything
>>inherently wrong with 'dumping' in the first place - it certainly
>>seems consistent with free market economics.
>
>
>Obviously you have not read Louis Leclerc's paper on the subject.
>A market means TRADE - buy and sell.  A one way market is no
>market at all.  And, its our own damn fault.  Time to stand firm.
>
 
>
>>  Try this: if Company 'J'
>>is truly offering their goods for sale below cost, and that cost is
>>also below Company 'A's cost, what would prevent 'A' from buying up
>>'J's goods? 
>
>Its called "channels of distribution."  Company A MAY be able to
>sign a joint marketing agreement, or an OEM agreement -- in which
>case they shut down production of their own goods, layoff workers,
>demolish R & D, etc, then resell the goods.  OR, Company J chooses
>to simply market through other channels - and chooses to NOT sell
>to Company A.
>
>> And if 'A' has inadequate access to capital to buy up
>>'J's goods, isn't that an indication that 'A' shouldn't expect to
>>compete with 'J' in this particular market in the first place?
>>
>>-- 
>>Ben Olasov		olasov@cs.columbia.edu
>
>
>No, because the keiretsus can finance deficits for a LONG, LONG time.
>
>-- 
>   _  Alan R. Weiss   IBM AWS Austin-AIX Kernel   11501 Burnet Rd, Bld 905
> _| ~-. alan%auntbea.austin.ibm.com@ibmpa.awdpa.ibm.com | Austin, TX 78758
> \, *_} auntbea.austin.ibm.com!alan@ibmpa.awdpa.ibm.com | 512-838-8281
>   \(   DISCLAIMER:  Working at, not speaking for, IBM  | alan@auntbea