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To: SC Swamp Fox

I know it is, at least on our products. We used to sell our superior products against inferior local goods in many of these foreign markets. We usually had to overcome a large price differential. Right now, a company in Poland can buy our superior US built equipment at a price that is very close to (usually not less then) the inferior local products.

For the first time in a long time, we have been able to raise our export prices (in dollars) and we are using the additional cash to upgrade our facilities and equipment and to hire & train new people. This is significant, because the average age of our equipment and our people were both getting pretty high.

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You think these countries are going to keep their tariffs low out of good will and love for the United States?


60 posted on 12/02/2007 8:48:15 AM PST by Hunterite
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To: Hunterite
You think these countries are going to keep their tariffs low out of good will and love for the United States?

No, protectionist barriers will continue to be thrown up. The key is to not have all of your economic eggs in one basket, don't rely on a small customer or market base. (When it comes to sales & marketing, diversity really is a strength.)

Some countries will erect barriers and tariffs, but in the long run they only serve to protect inferior products and inferior manufacturing practices from the forces of the free market, which does more damage to their local economy then it does to ours. It's not like we are the Chinese, using slave labor to undercut prices in the local markets. US manufacturers aren't selling on price, we're selling superior products who's prices have come down to a level near those of the locally manufactured goods because of the weak dollar.

Brazil is a good example of this, they have high tariffs that protect local companies with inferior products and practices. The Brazilian customers are the one's really suffering for it, however, it's torques me off that our government doesn't use a "mirror" tariff system.

In most of Europe our products are cheaper then the local products, I expect the Europeans will not install tariffs, they will take action to bring the $/euro rate back in-line.

75 posted on 12/02/2007 9:19:52 AM PST by SC Swamp Fox (Join our Folding@Home team (Team# 36120) keyword: folding)
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