Path: utzoo!attcan!uunet!lll-winken!ames!killer!vector!nobody From: dmkdmk@uncecs.edu (David M. Kurtiak) Newsgroups: comp.dcom.telecom Subject: Re: AT&T alleges dumping Message-ID: Date: 9 Jan 89 15:34:10 GMT Sender: chip@vector.UUCP Lines: 70 Approved: telecom-request@vector.uucp X-Submissions-To: telecom@bu-cs.bu.edu X-Administrivia-To: telecom-request@vector.uucp X-TELECOM-Digest: volume 9, issue 9, message 1 In John Higdon's(bovine!john@apple.com) posting to comp.dcom.telecom he writes: >Subject: AT&T alleges dumping >Date: 8 Jan 89 00:17:40 PST (Sun) > >Now that AT&T has entered the real world of competition, it has also >adopted the good ole American way of dealing with it. Having discovered >that its high-priced do-nothing crap they call equipment isn't selling all >that well, they focused their attention on (who else) the Japanese. W-R-O-N-G: not specifically the Japanese, but a handful of foreign manufacturers that have been proven to engage in dumping activities. >With the CWA and IBEW joining in the chorus, they are accusing Japanese >manufacturers of "dumping" cheap (but nevertheless full-featured) >electronic key equipment on the US market and are seeking relief from >the US government in the form of sanctions. > >They may be right. What sane person (other than some corporate >mentality type) would by a Merlin over a Panasonic 1232? But just maybe >they ought to consider how they might improve their product and lower >the price. But then that wouldn't be the American way. Just ask the >auto manufacturers. I was originally going to just ignore this rubbish, but felt that such ignorance cannot be let passed without some sort of rebuttal. The dumping accusations stem from real-world unfair trade practices that as I will point out, are a breach of open-trade agreements between the U.S. and it's trade partners. This is a perfectly legitimate gripe for *MANY* U.S. maufacturers. Without getting into a lecture on World Economics 101, read the actual press release(s) before making such radical conclusions and criticising specific companies, namely AT&T in your example. Scenario: U.S. based Company "A" sells small-business telephone systems for a nominal price of $1000 per unit. Company "B", which is foreign based, has a similar product, with or without better features that they sell IN THEIR OWN COUNTRY for $1000. Company "B" enters the U.S. market selling that same exact prioduct for $200. Keeping in mind that foreign governments often SUBSIDIZE industry, how can a U.S. manufacture even come close to competing??? Co. "B" is selling that product *BELOW* the actual costs of producing it, but because of the gov't subsidies they receive, Co. B still makes money hand-over-fist and captures a significant market share. Do U.S. mfgrs. receive government subsidies?? NO, generally not. This practice of selling below costs in a market other than the home country is known as DUMPING, and is indeed an unfair trade practice by definition of the enacted laws. I personally cannot see how any American, working for an American company in the United States can view this as fair competition. If the foreign competitors who wish to trade here played by the same rules, there would be no problem. But heaven help the U.S. manufacturer who attempts to dump their products in someone else's market. Trade wars, and accusations galore! You may not like American cars, telephones, or even Apple pie -- but be glad that at least you have that choice. In other countries you may not have such liberties. I'm not pro-protectionism, but just wish to see trade that is indeed FAIR to everyone involved. This probably isn't the appropriate group to discuss politics/trade policy, etc., but had to put in my two cents... HOP, *CLICK*, JUMP... I get off of my soapbox. --- David M. Kurtiak Internet: dmkdmk@ecsvax.uncecs.edu Bitnet: DMKDMK@ECSVAX.BITNET UUCP: dmkdmk@ecsvax.UUCP (rutgers,gatech)!mcnc!ecsvax!dmkdmk