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To: Didi who wrote (307)	6/20/2000 7:34:00 AM
From: edamo	Read Replies (1) \| Respond to of 1115

disu...."gray market" the term is commonly used when a product is exported by a non franchised entity into a market that has been "protected" via franchise or exclusive rights to export by the manufacturer of the product. this practice of exporting to japan is very common, sometimes referenced as "parallel" export/import, which allows product to legally enter the country, but not through the normal trading company/supply channel. the "canon camera bodies" were used as an example. they could be purchased at about half the price of the japanese home market price in nyc, sent back to japan and resold below market price with a strong profit. same was done prior to change of epa/dot regs with high end european cars, imported to the usa, federalized and sold at a lower then usa market price. the problem with consumer goods is that a manufacturers warranty may not be honored. trade data is really "non-data". so much emphasize is placed on "balance of trade" and "trade deficit". what does it matter if currency flows out and goods and service are received for same? it is the essence of trade. when you shop at the supermarket, unless you sell what you grow in your garden back to them, you maintain a "trade deficit".......but you really are not "deficient", as you received goods in return for currency. not possible or even logical to maintain a "neutral trade balance"...that in itself would be chaotic. examine the balance sheets of the multi nationals......components or assemblies moved between countries are not really considered import/export, as many "free trade" zones exist for manufacturing/tariff purposes. monies made by ibm japan flow to ibm usa, and do not show as "export revenue"....... contact the department of commerce....start asking questions about how they calculate and statistically back their trade figures...you may be surprised at how much estimating is done, and how much emphasis is placed on raw material and capital equipment, whereas service revenues are many times ignored. i ignore trade data, as it is meaningless to the industrial world, other then the usa......this is why our trade talks are always shrouded in confusion....why the japanese can't understand why the usa twists their arm, but never considers the investment in plant/equipment/employment that japan has made in the usa..... we (the usa) always want someone else to do our work, instead of building the global product that we are capable of producing. the most successful usa companies have mastered the global product concept...the slackers depend on the department of commerce to politically break down barriers that others have passed through easily with a quality product.