Re: Dumping

From: John Clark (
Date: Wed Dec 26 2001 - 08:32:45 MST Wrote:

>if I can manufacture in Japan and recover my overhead there then I
>can lower my price in the U. S. up to 40% and still be making a profit.

  Then the Japanese consumer is paying more for things so that the
  American consumer can pay less, in effect Japan is sending a gift
  to America. Well, that very nice of them but it's not a recipe to
  enrich Japan or impoverish America.

>the American manufacturer finds himself blocked out of the
>Japanese market

  Another foolish move by the Japanese, this time it harms both
  nations. The worst thing we could do is repeat their mistake.

>no guarentee the prices will remain low as soon as American competion
>is eliminated.

  In real world economics nothing has a guarantee, but if they
  increase prices then they have lost their only advantage in the
  marketplace. Historically American capitalism has been very
  good at filling vacuums in the free market and in exploiting
  the weak points in trading partners.

        John K Clark


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