Booms, Busts, and Recoveries Message Board

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Strategies & Market Trends : Booms, Busts, and Recoveries

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To: Snowshoe who wrote (72044)	1/15/2010 3:59:10 PM
From: Snowshoe	of 74559

The "quality fade" problem with Chinese manufacturers... AP Enterprise: US buyers must beware in China news.yahoo.com One thing that frequently happens in China is that factory owners will bid extremely low — even to the point where they have no profit — just to win an order. Once they've got the business, they search for ways to cut corners so they can widen their profit margin and recover what they lost with their lowball bid. They might switch to cheaper lead paint or buy inexpensive metal containing cadmium. This is called "quality fade."

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