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Technology Stocks : Dell Technologies Inc. -- Ignore unavailable to you. Want to Upgrade?


To: Lee who wrote (145221)10/19/1999 6:38:00 PM
From: edamo  Read Replies (2) | Respond to of 176387
 
lee....re: "what bothers you...."

concur with some of your comments. SEA? do you mean south east asia?

typically it benefits both buyer and seller to negotiate a fixed price and fixed term supply agreement. at the time of contract a currency futures contract is entered into to lock price/currency conversion for term of contract. letters of credit for fixed amount/term also established with draw down against release. to do otherwise in international trade would be extremely risky on currency fluctuation alone.

the "dedicated" supply is just that, a constant flow of material to the buyer. if the seller determines to route the supply to a higher bidder, then the buyer is dealing with a weak link in the supply chain. if this has happened to dell, then they have real trouble going forward.

there is more loyalty and honor in asian business then one tends to perceive.....the ability to always "save face" is culturally foreign to western business minds.