To: RockyMtnMan
Our competitive advantage is in our obvious expanded productivity, and our affluent market place.
We have the ability to not only sell more computers in our home market, but to export them out to ther nations.
We can make both the components, and the computers.
But if we buy the components (cheaper), we can concentrate on assembling more computers at a higher margin of profit.
104 posted on
03/20/2004 12:01:24 PM PST by
Luis Gonzalez
(Unless the world is made safe for Democracy, Democracy won't be safe in the world.)
To: Luis Gonzalez
Our competitive comparative advantage is in our obvious expanded productivity, and our affluent market place.
Productivity and personal wealth are not products. If India is so good at software development don't you think they would have a higher level of productivity? Higher productivity currently means fewer people working more hours not the utopian idea of fewer workers working the same hours producing more. The intent of higher productivity is to improve our quality of life, not dimish it by reducing our time with our families.
We have the ability to not only sell more computers in our home market, but to export them out to ther nations.
Our market is already saturated and computers are a commodity in this modern age. If we are no longer developing high-tech software/hardware do you see growth potential in this segment of the market?
We can make both the components, and the computers.
We haven't made the components in the US in years and I doubt we have enough engineers left in this country to compete with Taiwan. I assembled computers in high-school and sold them for a weekly commission check. Any moron can assemble their own PC from components, you don't even have to worry about IRQs anymore.
Computers are an extremely low profit business and like most commodity industries profits are only generated through volume. The only volume sales will be to developing nations. Since we cannot build commodity items like computers domestically cheap enough to sell overseas we have to manufacture them overseas.
Don't confuse the software industry with the PC market. Software is extremely high margin once R&D costs have been recouped for a base product. Showing Indian and Chinese companies how to compete in these high margin industries is f'ing stupid because that is our comparative advantage, lets not throw it away by giving them the goose.
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson