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"Nonsense. "Dumping" may violate trade agreements, but you'll first have to demonstrate that such activity is happening. As far as I'm aware, there is no such evidence."
You didn't take macro-economics 101 did you? It is widely known that product dumping into the U.S. is practiced by many foreign companies. Japanese electronics companies for example, are notorious for doing it (and covering the losses through government sponsorship).
"And the anti-trust issue is a red herring as it only pertains under certain specific conditions to companies who command a monopoly position in a particular market."
No. it doesn't. Selling products below cost in order to eliminate competition violates anti-trust laws. It doesn't matter whether you are already a monopoly or not.
You quite obviously have a very poor understanding of economic theory. Dumping may have been widely alleged, but it has rarely been proven. And it is almost impossible in theory to sustain such a charge in the case of something like software where the only tangible expenses are labor costs which will not rise in linear fashion along with a growing market. Engineering costs are rougly the same whether you have one customer or 100 million customers. And selling cheap on the expectation of thereby gaining a growing market share is a perfectly legal business strategy.
And you're simply wrong about anti-trust laws. Selling below cost is a common business practice in tight commodity markets. Ever heard of a loss leader? Or perhaps you'd care to quote the relevant parts of the Sherman/Clayton acts, or relevant case law, which would demonstrate otherwise.
Edited 2005-12-21 01:15
Selling products below cost in order to eliminate competition violates anti-trust laws. It doesn't matter whether you are already a monopoly or not.
Really makes me wonder how microsoft is selling the xbox 360 at a $120 loss, or how the playstation 3 is going to be sold at a ~$150 dollar loss...







Member since:
2005-07-11
_Which is a perfectly legitimate and appropriate response to the fact that a lot of these services are being dumped into the U.S. market at artifically low costs--which by the way, is illegal for U.S. companies to do because it violates anti-trust laws._
Nonsense. "Dumping" may violate trade agreements, but you'll first have to demonstrate that such activity is happening. As far as I'm aware, there is no such evidence. It's simply far cheaper to employ software engineers in India and Russia than it is in the US. Lower costs, lower prices. That US engineering firms can't compete isn't evidence of dumping. And the anti-trust issue is a red herring as it only pertains under certain specific conditions to companies who command a monopoly position in a particular market.