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

To: Bookdon who wrote (10270)	6/8/2004 2:22:07 PM
From: Ira Player	Read Replies (1) \| Respond to of 25522

No, it is not easy to analyze... Add to that the "internal supplier" relationships that exist within corporations for tax purposes. Overpaying for a part from a foreign subsidiary to transfer the profit to the lowest tax rate country, etc. Much more complex...but still decidedly different since the late 60's early 70's... Ira (Not directly related to tech...I read in the late 80's a analysis of the beef export business. Imports into Japan began to rise dramatically in the late 80's... the cause...Japanese companies had bought up several large ranches and were raising beef. The restrictions against import were softened and they were allowed to "export" the beef to Japan, while others were denied because of the biases in the import rules. The article showed some pricing that indicated the price paid was significantly higher than market. The reason: Americans were getting upset about 2 things...1) the balance of trade with Japan and 2) the "Buying of America" by Japan. (The "Buying of America" was actually a Fortune cover, if memory serves...)By "overpaying" for the beef, they were reducing the balance of trade (#1) and transferring money into the US for acquisition of more land without it being counted in #2)