Asian crisis has a silver lining for U.S.<\/p>\n
NEW YORK (AP): General Motors is gearing up to move into
\nIndonesia. Hewlett-Packard is talking to suppliers about using
\nmore Asian-made components in its high-tech goods. And Dell
\nComputer is trimming the price of a popular computer.<\/p>\n
The Asian financial turbulence, which has buffeted the
\ncurrency and stock markets of far-flung economies, may offer
\nunexpected opportunities and benefits to American consumers and
\ncompanies.<\/p>\n
\"The economic crisis in Asia has a silver lining,\" said Greg
\nMastel of the Economic Strategy Institute in Washington.<\/p>\n
Companies making goods in Asia to sell elsewhere may see sales
\nsoar, because with the region's currencies tumbling, products
\nmanufactured there will cost less. Imported goods will be
\ncheaper, which will help keep inflation cool. And with
\ninflationary pressures subsiding, interest rates should remain
\nlow.<\/p>\n
Other opportunities also may emerge from the gloom.<\/p>\n
Thailand, Indonesia and South Korea, in exchange for
\nmultibillion-dollar rescue packages from international donors,
\nmust revamp their economies. Trade barriers are likely to be torn
\ndown, allowing outsiders into their lucrative steel, auto and
\nfinancial sectors.<\/p>\n
The crisis provides \"a historic opportunity for the United
\nStates to convince troublesome Asian trading partners to change
\ntheir ways,\" said Mastel.<\/p>\n
However, Asian analyst Charles Morrison of the East-West
\nCenter in Honolulu cautions that \"there is a danger in looking
\ntoo narrowly\" at any advantages offered by the crisis. \"Then,
\nthere will be kind of a backlash against us. There is a simmering
\nview that we welcome and gloat in it... without a realization of
\nthe tremendous dangers.\"<\/p>\n
To be sure, the financial turmoil that has swept through Asia
\nsince the summer poses great risks not only for that region but
\nfor the global economy as well.<\/p>\n
A weak Asia, including Japan, the world's second-largest
\neconomy, could stifle economic growth in America, and that could
\nlead to job losses, maybe even corporate closures.
\nWall Street already has been rattled by fears Asia's woes will
\nhurt profits of American companies.<\/p>\n
Still, in the new global economy of increasingly interlinked --
\nand highly competitive -- industries and financial systems, there
\nseems to be an upside for some to any downswing by others.<\/p>\n
Other companies are eager to gain a larger foothold in
\npopulous Asia with the expected easing of trade and other
\nrestrictions on foreigners. Moreover, with the nations'
\ncurrencies reeling, foreigners may be able to snap up local
\ncompanies at bargain prices.<\/p>\n
General Motors wasted no time in expressing interest in
\nIndonesia after the nation's president, Soeharto, under pressure
\nfrom international donors, agreed to remove tax breaks for its
\nnational car program. The protectionist measures had kept foreign
\nautomakers at bay in the world's fourth most populous nation.<\/p>\n
\"We now stand ready to... make further investments, including
\nthe introduction of new products, as market conditions become
\nmore favorable,\" said Donald T. Sullivan, president of GM's Asian
\nand Pacific operations.<\/p>\n
GM also is talking with Daewoo Motors and other South Korean
\ncompanies about acquiring all or parts of their operations, said
\nspokesman Mike Meyerand.<\/p>",
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"sponsor": "Okusi Associates",
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