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Gold/Mining/Energy : Precious and Base Metal Investing -- Ignore unavailable to you. Want to Upgrade?

To: Taikun who wrote (32764)	11/25/2004 10:53:42 AM
From: Louis V. Lambrecht	Read Replies (1) \| Respond to of 39344

Subsidies of the amounts involved when only one manufacturer or syndicate is involved rarely are money. Both parties effectively barter. This is called "compensations" contract. Compensations can be the pure barter, or completed with indirect compensations, then indirect of second order. Usual in arms and aeronautics trades. I wouldn't say the price does not matters, to the contrary. The buying party would try to get the more "compensations" for every airplane. A direct compensation is simply to let the buyer manufacture elements of the airplane (acquire knowledge, expertise, craftskills, install a new industry, work hours,....). Indirect compensation: beyond the direct, invest in new plants. You need 6 airbus, if you buy eight we will build a new tires plant. For ten, we offer you a $6000-car production line. Secong order indirect: per airbus bought, we would in return buy x tons of rice at your said price, plus buy the $6000-cars you produce, plus ..... No money involved. But, if you account for all compensations, the total deal amounts to more than 3 times the initial order. And governments only have to agree that the deal was a trade with direct compensations. Voters understand this. All contacts about the indirect ones are reputed non-written: verba volent. A classic in foreign relations. Voters would see what their exports cost in total. <g> So, would airbus receive more subsidies with yje EUR @1.50? WTF. They don't receive "subsidies in the first place. ROFL.