At 05:59 AM 9/3/2002 +0000, you wrote:
>That's not really what I meant.  I meant that if you can manufacture
>a product and all its components in-house you are much more likely to
>have a lower price than competitors that out-source their
>components.  "In-house" doesn't mean within the borders of this
>country or that country, in simply means at the same factory.


 From a purely business standpoint this is not always the case. Often the 
cost of the equipment and manpower required to produce certain parts could 
be more cheaply produced if the equipment were being used on a full time 
basis, this may exceed the amounts you need.  A similar thing I have run 
across recently,... A large farm was cut into 10 acre "farmettes". It 
doesn't make financial sense to purchase hay making equipment to hay just 
10 acres. The large farmer next door sells these farmers the hay that they 
need for the winter.
Caroline




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