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Politics : Formerly About Advanced Micro Devices
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To: Dale J. who wrote (36292)8/24/1998 12:40:00 AM
From: Elmer  Read Replies (3) of 1573036
 
Dale - Check out

aei.org

"Under current law and practice, a corporation can be found guilty of dumping if the price of its product abroad is lower than the price in its home country, or if it is alleged that the product is being sold at a price lower than the cost of production plus reasonable selling costs and profit. In addition, so-called predatory dumping is actionable when it is alleged that a producer is attempting to achieve a monopoly by driving foreign competitors out of business."

Assuming this article is accurate, it is still a little unclear. There are 2 conditions which satisfy the definition of "dumping"

#1: Under current law and practice, a corporation can be found guilty of dumping if the price of its product abroad is lower than the price in its home country,

#2 (notice the term "OR") "or if it is alleged that the product is being sold at a price lower than the cost of production plus reasonable selling costs and profit."

This second condition seems to describe AMD's behavior since the introduction of the K6 and it's derivatives. This doesn't meet the test of "predatory dumping " because it doesn't involve "foreign competitors", however it would appear that AMD is in fact "dumping" the K6 and Intel may be entitled to seek damages. Will this revelation affect AMD's stock price next week?

EP
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