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Technology Stocks : Applied Materials No-Politics Thread (AMAT) -- Ignore unavailable to you. Want to Upgrade?

To: robert b furman who wrote (7482)	10/10/2003 3:22:01 PM
From: Big Bucks	Read Replies (1) \| Respond to of 25522

Robert, It is good that Grove is acknowleging the problem. Here is how I see the situation: 1. Past US corporate taxes were extreme and were responsible for limited corporate re-investment in the US. 2. CEO and senior officer salaries have been outrageously high for the real value added contribution to corporate growth and have negatively affected corporate profitability. 3. US labor costs have become expensive to maintain as profit margins have decreased. 4. Once the growth rate of a product stops growing exponentially and there is strong competition for market share, the product becomes a commodity and margins erode even as the technological capability continues to improve. 5. The cost of doing business in a global economy becomes more expensive because of the infrastructure requirements necessary to support a global operation are huge. (consider offices, salesmen, secretaries, cars, and other intangible asset costs to conduct business operations) Personally, I think doing business in a global market is over-rated because of the need for such companies to have to support such a huge infrastructure, regardless of business conditions.... this is a massive drain on the profitability of international companies, unless they are the only company in a niche and exponentially growing market... BB