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To: Stewart Whitman who wrote (2681)	12/6/1997 8:41:00 AM
From: jeffbas	Respond to of 78594

Thanks Stew - I have been trying to figure out how a domestic seller of imported parts from Asia would do. Would, or would not, the units sold increase faster than the price went down - leading to a net revenue/margin increase? A desperate Asian exporter, whose costs have gone down a lot in dollar terms (whereas the US importer's have not) can afford to cut the price of a dollar priced product a lot and still come out ahead. The US importer is not so fortunate and I am not sure they would benefit. I believe the concern over domestic tech mfrs is that exports to Asia would be expected to drop and margins on products sold in US would be squeezed by competition from lower priced imports. (However, I was only addressing above the situation of a domestic importer.) Jeff