Word: profit
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...case is extraordinary. Never before have officials outside the U.S. nixed a merger between two giant American corporations already approved by the DOJ. Never before have U.S. companies lobbied so ferociously against their U.S. rivals in a foreign capital. And that's why, for any company that seeks to profit from globalization, there are abundant lessons in the story of how Jack fell down...
...cars have piled up in showrooms. How about Jay Leno's line--that the only consumers who benefit from high gasoline prices are Hyundai owners because every time they fill up, the car's value doubles. The tinny, troublesome autos had so many problems that dealers made repairs a profit center. Their unadvertised slogan: Hope You Understand Nothing's Drivable and Inexpensive. The notion that Korea was another Japan ready to challenge U.S. competitiveness evaporated in late-night laughter...
...bank took over management of Gdynia's shares in 1996. He then used his personal banking connections to obtain desperately needed credits that would help boost the shipyard's output. He put the workers on round-the-clock shifts, which boosted productivity. In 1997 the shipyard was turning a profit of $16 million on $300 million in sales. The next year, net profits nearly doubled, to $30 million. Szlanta is highly motivated to keep the yard on a roll--he and two other shipyard executives own one-third of Gdynia's stock, and the company has plans to list...
...couple buy a house for $500,000 and sell it four years later for $1 million, then buy a house for $1 million and sell it four years later for $1.5 million. The couple would realize a profit of $1 million. But they would owe no tax because they were able to take the full exclusion on each sale. Had they bought for $500,000 and sold eight years later for $1.5 million, they would have the same $1 million profit but could have taken the exclusion just once and owed tax on half the gain. Their bill...
...time and the Dow reached heights not seen since last fall, the U.S. has heard little but bad news. Last month telecom and fiber-optic giant Nortel (O.K., we know, it's really a Canadian company) announced an eye-popping loss of $19.2 billion for the quarter. Since then, profit warnings have come thick and fast, and commentators have started worrying that the Fed's six rate cuts this year (continued when the Open Market Committee lowered short-term rates by an additional 25 basis points on June 27) were not stimulating demand as expected. Meanwhile, Japan continues...