Dram Prices...
Clayton Cramer
cramer at optilink.UUCP
Thu Jan 19 04:35:21 AEST 1989
In article <507 at solaris.UUCP>, wyle at solaris.UUCP (Mitchell Wyle) writes:
> >Why should we reject a gift from the Japanese taxpayer?
>
> I don't claim to understand macro-econ better than you, but I'll bite on
> this one. The argument goes as follows: MIDI, the taxpayers, and the
^^^^
That's MITI, Ministry of International Trade. (Not to be confused with
MIDI, a music interface for computers). MITI is the same smart bunch
that refused to help a struggling Japanese industry -- automobiles in
the 1950s -- because there was no realistic hope of selling Japanese
cars abroad.
MITI has done a great job of persuading people that it does a great
job helping Japanese industry. It's not at all clear that they do.
> corporations of Japan dump drams on us until
>
> 1. small, economically efficient US companies lose their ability
> to make drams,
Small companies are usually more efficient -- but there are sectors
of the economy where significant economies of scale play a significant
role. DRAMs would seem to be one of them.
> 5. They have a large enough advantage (via 1-4 above) to maintain
> their very large market share.
There is one very effective way to break someone else's market share --
better products and better prices. But that's harder than hiring
legions of lawyers to "solve" the problem of competition.
> -Mitchell F. Wyle wyle at ethz.uucp
--
Clayton E. Cramer
{pyramid,pixar,tekbspa}!optilink!cramer
Disclaimer? You must be kidding! No company would hold opinions like mine!
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