Path: utzoo!attcan!uunet!lll-winken!scooter!netsys!vector!nobody From: MITRE-KOREA@SEOUL-EMH1.ARMY.MIL Newsgroups: comp.dcom.telecom Subject: Re: AT&T alleges dumping Message-ID: Date: 11 Jan 89 00:15:41 GMT Sender: chip@vector.UUCP Lines: 35 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 11, message 6 I followed the discussion of ATT and dumping with some interest. Since I am currently living in Korea, I thought I might have a thing or two to consider. First of all, I doubt that things are ever as simple as we would like. The existence of differing internal (i.e. domestic) tax laws and market policies, as well as external (i.e. import/export) ones makes it difficult to directly compare situations across countries. Koreans, for example, pay sales taxes far in excess of any in the U.S., at least on "luxury" products like cars and computers. Second, the law of supply and demand (with allowances for taxes and other market-distorting forces) still applies. A smaller demand will generally imply a higher market-clearing price. In Korea, for instance, the middle class is much smaller than in the U.S., so it is only the rich who buy things like computers. Thus both a smaller market and a less price-sensitive consumer. Third, distribution mechanisms are different. I am unaware of any Korean mail-order Computer Shopper-type distribution. Fourth, culture. Koreans are VERY Korean. They don't need any government "buy Korean" programs. Buying foreign goods when Korean equivalents are available is frowned upon socially. (This is changing however. In particular there is considerable snob appeal in owning a foreign-made item, since it is usually seen as more expensive and possibly better made.) Now the anecdote: As an American living in Korea, I can buy a Korean-made Leading Edge Computer more cheaply by mail order from New Jersey, including shipping, than I can get it here. It's a strange world. Moral: ? Dan Jones mitre-korea@seoul-emh1.army.mil