tag:blogger.com,1999:blog-1769659900634709753.post-1795078329263421482008-01-02T21:42:00.000-05:002008-01-02T21:42:00.000-05:002008-01-02T21:42:00.000-05:00<I>They're hoping to move most of their employees from Concord to Virginia and they're significantly increasing production there. Conclusion: they must not be moving too much to Europe. Unless you're going to say that they're is an increase in smoking now all of a sudden.</I><BR/><BR/>Maybe I'm too optimistic; but ff they can teach dolphins algebra - liberals can learn economics.<BR/><BR/>Demand for cigarettes in Europe is going up creating a <I>growing</I> market<BR/><BR/>Demand for cigarettes in the US is going down that's a <I>shrinking</I> market.<BR/><BR/>There are <I>barriers</I> to the growing market in Europe to cigarettes produced outside of the EU. Therefore, PM will put future production in Europe.<BR/><BR/>In response to the <I>shrinking</I> demand, PM is <I>reducing</I> their supply in the US by consolidating their production to Richmond. <BR/><BR/>There's not a one-to-one relationship between the number of workers and the number of cigarettes produced; but PM is consolidating their production to one facility to save domestic production so it can put capital in foreign operations. <BR/><BR/>This strategy is enabled - in part - due to trade restrictions in Europe.<BR/><BR/>Is PM doing this to increase profits? You bet. <BR/><BR/>You wouldn't want to work for an organization that doesn't try to grow and respond to the market - regardless of the convenience of never locating...just ask any Pillowtex worker.Justin Thibaulthttp://www.blogger.com/profile/08372004100442741119noreply@blogger.com