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To: Peter O'Brien who wrote (10252)3/27/2004 6:07:31 PM
From: Lizzie TudorRead Replies (3) | Respond to of 81568
 
I predict you will start seeing U.S. companies
SPINNING OFF their profitable foreign-based operations
into SEPARATE foreign-based companies!


Well then, that separate Indian company will have to somehow move their product in the US, and how will that be achieved? If they truly are an offshore firm, they are locked out of most US government business, schools etc. This is high tech. For heavy machinery, cars etc. there are quotas that exist for offshore firms. It isn't as easy to do business in the US if you are an offshore company and that is why most of the biggest corps in the world are US!

These offshore firms won't be able to "partner" with their US counterpart firm because they would then be back in the first situation of double taxation.