CompuServe Messages

Norm, I know that US pressures on Japan to change their trade practices has been substantial, and that several minor agreements were made earlier this year, but I don't recall any mention of electronic parts being a part of these agreements. Japan has been pressured not to dump product on the domestic market, but that is not government price fixing. Rather, Japan is being pressured to sell the products on our market based on market demand and not Japanese government price support. Based on my chip purchases over the past 10 years, chip prices are definitely higher today than two years ago and cheaper two years ago than four years ago. So the market has fluctuated quite a bit both based on supply/demand conditions as well as on US trade pressure on Japan. Note that recent NAFTA agreement might impact on the prices of chips coming from other parts of the world. Although Japan is a major producer, so is Mexico, Taiwan, and Korea. As for your last comment, well that's business. Free market competition means, also, the opportunity to crowd out competition. However, I think what you really mean is that business would rather operate in a monopoly than in perfect competition. Neither, however, need operate outside of a free market, which really has more to do with minimizing external (government) influence. In fact most businesses prefer it. Just keep in mind that Japanese business is not free market nor do the Japanese believe in free markets. They relish government interference since it is usually favorable for them.