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Strategies & Market Trends : Strictly: Drilling II -- Ignore unavailable to you. Want to Upgrade?

To: Jim Willie CB who wrote (28980)	3/3/2003 6:21:08 PM
From: Art Bechhoefer	Read Replies (1) \| Respond to of 36161

Jim, I can only give you a few examples of how exports of products made in the U.S. would result either in greater sales volume or foreign exchange translation gains as a result of a lower valued dollar. Goodrich is an example. They make aircraft component parts, such as brakes, landing gears and certain related components. Buyers include many airlines headquartered overseas, and many overseas military customers as well. All aviation parts must be FAA certified, which is why Goodrich and other component makers can sell their certified products to foreign countries. QUALCOMM is the leading producer of chipsets for wireless phones using the CDMA system. The chips are actually made outside the U.S. (mostly in Taiwan), but QUALCOMM isn't just selling a chip; they're selling the design work that resulted in that chip, which shows up on the books as revenue from licensing fees and royalties. Unless the foreign countries where these sales are made have a currency tied to the dollar, a lower valued dollar eventually will result in higher revenues after conversion into dollars. Blue chip companies like Coca Cola, 3M, and IBM, all of which have large European sales, have been reporting foreign exchange translation gains. Unfortunately, the weak economies of many European countries counteract these gains because of smaller unit sales. As you note, it's hard to find something that is truly made in U.S.A. any more. But grain and other agriculture produce would also produce higher sales, if it weren't for the subsidies still used in Europe to make their own produce more competitive. Art