on 9/19/2007 12:47 AM Too_Many_Tools said the following:
On Sep 18, 6:18 pm, "Noozer" wrote:

So, if one consumer purchases a single Canadian made shovel for $50 and
ten
consumers purchase a Chinese made shovel for $5 the market is even? I
think
not. 1 Canadian shovel does not equal 10 Chinese shovels.

In the economy and especially in things like balance of payments,
exactly the same. Besides, this tells nothing about the quality or
anything else of interest about the shovels. Differences in steel, for
instance between the two.

My point is that eventually all that folks will buy is the $5 shovel and
then what happens to the company making $50 shovels?


Why can't the company making $50 shovels make $5 shovels too?


Their workers make more than a dollar a day.

Giving the consumer a range of choices is a common business practice.

Selling a cheaper product is often used to support any additional
costs for producing a more expensive product.

Producing only one product is like selling to only one company...life
is good when the sales are there and the company goes belly up when
the sales disappear.

Diversification to lessen risk is a lesson you learn in Business
101....do you think the MBAs skipped that class to drink more beer?

It comes down to corporate greed and stupidity.

TMT




--

Bill
In Hamptonburgh, NY
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