Dram Prices...

[Clayton Cramer]

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!