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Technology Stocks : Cisco Systems, Inc. (CSCO)
CSCO 71.080.0%3:59 PM EST

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To: RetiredNow who wrote (66766)12/20/2004 11:48:46 PM
From: Elroy  Read Replies (1) of 77397
 
Or have they managed to do it without losing alot of U.S. brainpower and capital to China?

I think you are overestimating the idea of Chinese engineering. CSCO and every other major global corporation with have some R&D in China, and India, but that's normal for a world-class company. It only becomes a major concern when CSCO has significantly more engineers in China (as % of total CSCO engineers) than % of sales. So if 10% of CSCO's sales are into China, when 30% of CSCO R&D is in China I would raise a red flag. That's a long, long, long way off. Remember the Chinese salary is lower, so on a headcount basis it would imply something like 30 Chinese engineers for every 1 US-based engineer. I don't think that is happening soon (or ever).
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