Message from @Mr1Gonzalez
Discord ID: 539082701387464734
but of course, socialists tend to have little knowledge of economics since most of their wage slavery bullshit stems from marx
**"**Herbert Dow invented a more efficient process to separate bromine and sold it to other firms, which made it into sedatives and photographic supplies. Dow and other Americans sold bromine inside the U. S. for 36 cents.
Internationally, a powerful German cartel, Die Deutsche Bromkonvention, had been the dominant supplier of bromine since it first was mass-marketed in the mid-1800s. This cartel fixed the world price for bromine at a lucrative 49 cents a pound. Customers either paid the 49 cents or they went without. The Bromkonvention made it clear that if the Americans tried to sell elsewhere, the Germans would flood the American market with cheap bromine and drive them out of business.
By 1904, Dow was ready to break the unwritten rules and decided to sell in Europe. He easily beat the cartel’s 49 cent price and sold America’s first bromine in England. Before long, the Bromkonvention poured bromine into America at 15 cents a pound, well below its fixed price of 49 cents, and also below Dow’s 36 cent price.
Dow worked out a daring strategy. He had his agent in New York discreetly buy hundreds of thousands of pounds of German bromine at the cartel’s 15 cent price. Then Dow repackaged the German product and sold it in Europe—including Germany!—at 27 cents a pound. "When this 15-cent price was made over here," Dow said, "instead of meeting it, we pulled out of the American market altogether and used all our production to supply the foreign demand. This, as we afterward learned, was not what they anticipated we would do."
The confused Germans kept cutting U. S. prices—first to 12 cents and then to 10.5 cents a pound. Dow meanwhile kept buying the stuff and reselling it in Europe for 27 cents. Even when the Bromkonvention finally caught on to what Dow was doing, it wasn’t sure how to respond. As Dow said, "We are absolute dictators of the situation." He also wrote, "One result of this fight has been to give us a standing all over the world . . . . We are in a much stronger position than we ever were . . . ."
When Dow broke the German monopoly, all users of bromine around the world could celebrate. They now had lower prices and more companies to buy from. This victory propelled the remarkable Dow to challenge the German dye trust, and, after that, the German magnesium trust. His successes in these industries again lowered prices and helped liberate the American chemical industry from its European stranglehold.**"**
just a history lesson on predatory pricing myths
@Leiro レイロ you know you can destroy a business by practices not including lowering your prices right?
We were talking about predatory pricing
I wasn’t
I was @‘d
@Mr1Gonzalez well?
care to explain further?
Hmmm how about establishing a hyper market and setting up shop around small businesses that focus on one outsource then acquiring the same exact products they sell?
Or
How about a business using up their entire space to block out the viewing of another business by campaigning a ton of their ads on a fence like some gas stations do
Or
the thing is that the size of the business you are describing entails a large amount of capital to do so, larger companies usually face diseconomies of scale and escalating costs. Smaller businesses are more efficient than larger corporations in this regard, meaning that they would be more profitable in the long run
How about companies that rely of view to ally and other a network such as the NFL requesting no decent time slots to be given to the Arena Football League, forcing their views to decrease dramatically
and no, i dont see how the second example could work
I’m trying to think of the term
but im not sure what nfl is
It’s been illegal ever since in America but it’s when a big business puts their ad over a smaller company
NFL
oh that
>_>
Bruhhh
sorry im not a american
so i dont know
How are you in a Amer-
I’m done
im not a american
Good for you lol
but the first example you say is kinda untrue
it normally dosent work like that, its impossible to win out or surround all smaller competitors in the market
in order to do so they have to eliminate competition, something only government does on a regular basis
Yes because there are laws currently in place that protect small businesses from that
🤦♂️
it depends on the nature gonzalez
young industries in developing nations usually employ protectionism in order to make them grow
One example from Australia