From: ludwig@sage.cc.purdue.edu (Mark Stephen Kidder)
Subject: Re: Why memory costs doubled
Organization: Purdue University
Distribution: global
Date: Tue, 17 Nov 1992 02:00:51 GMT

In <1992Nov16.220410.4258@mksol.dseg.ti.com> mccall@mksol.dseg.ti.com (fred j mccall 575-3539) writes:

>In <1992Nov13.181714.1835@dcatlas.dot.gov> joet@dcatlas.dot.gov (Joe Trott) writes:

>>phillip@kiwi.gen.nz (Phillip Hardy) writes:

>>>noel@reg.triumf.ca (NOEL) writes:
>>>: 	I am still peaved that RAM prices have doubled overnight seamingly
>>>: their cost from the distributers has gone up.  Something is very fishy.  
>>> 
>>>Ok the same thing has happened here in New Zealand...two weeks ago i could get 1meg simms for NZ$60 and this week they are $80....the reason i was given was 
>>>something about the Korean ram haveing a higher import duty imposed on it in the States and that all the importers where now chasing the Japanese produced RAM 
>>>So with everyone getting the Japanese RAM the prices have gone up..Supply and 
>>>Demand I guess...

>>NO!  Not supply and demand; you are unfortunately paying for the result of
>>the U.S. Government initiating the use of force to collect fees for which no
>>service of value is provided, i.e. you are an indirect victim of extortion.
>>In the U.S. now, rather than act to secure individual rights (the sole
>>purpose for which it was chartered), the government "works" by granting
>>benefits to one group at the forced expense of others, in this case
>>certain business interests found it easier to complain than to compete.
>>Granted, the Koreans were "dumping" at below cost, but people who are not
>>so shortsighted would realize that "what goes around comes around".  The
>>kneejerk reaction, unfortunately, was to initiate the use of force in order
>>to placate a body of future votes for those in office.  This means that we
>>all lose; once more the well-being of the producer being sacrificed at
>>gunpoint (figuratively) for the well-being of the parasite.

>Oh, horse manure.  How can duties imposed IN THE U.S. affect prices of
>DRAM in *NEW ZEALAND*, where they are presumably still able to buy
>whatever Korean DRAM products the Koreans choose to dump there for the
>original price?  If anything, I would expect that (since the Koreans
>are now gong to be interested in shipping someplace not subject to
>U.S. duties) that prices should FALL elsewhere (glut due to Koreans
>not being able to sell in the U.S.

>When one party in a free market is effectively subsidized by their
>government and is 'dumping' product, how can you call that
>'competition'?  

The REAL reason is because a few weeks ago the Koreans lost a major 
lawsuit filed by an American company (I forgot which one) because the
Koreans copied their memory chip design without permission.  They lost
a substantial amount of money and thus raised prices on the memory chips.
This information is provided courtesy of the Reseller's magazine and 
the Wall Street Journal.  Have a nice day!

msk
-- 
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