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Politics : PRESIDENT GEORGE W. BUSH -- Ignore unavailable to you. Want to Upgrade?

To: Bill who wrote (456403)	9/10/2003 4:47:08 PM
From: Lizzie Tudor	Read Replies (3) \| Respond to of 769670

you want a theoretical or a practical answer? I'll give you the practical one because I think we both know what the theretical one is. When applied materials offshores a dept of 30 100K workers, they save 3 million a year. They now have a choice, they can apply this $$ to the bottom line, sell the same equipment for the same price they always have and make more profit. That is option A. Option B which is the path they are taking, is they LOWER the price on their product in order to gain market share and sell more equipment to the emerging markets especially China who right now, are price sensitive. So, since they chose option B, there is no immediate effect to the bottom line or profits. They are gaining share however. So in 10 years, Applied is going to pay a ton of taxes, theoretically. But they pay NO MORE NOW. In the meantime we have lost the jobs. So there you have it.