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Comment by eru | Hacker News Reader

You say it like 'undercutting' is a bad thing.

If consumers have to pay less, that's a Good Thing.

Not when the domestic companies which manufacture the same product wither as a result. Don't get me wrong, I don't believe in defensive national economic policy as a blanket protection we should do to protect all industries, but in special circumstances such as this one where losing all of our electric vehicle production capability and specialization is at play, I think it certainly is in our strategic interest to avoid that from happening.

> Not when the domestic companies which manufacture the same product wither as a result.

That's not how economics works.

A company being unable to compete with another one on price will result in a drop in revenue, as consumers purchase the product with the cheaper price. Revenue going down is bad for a business. How exactly is any of what I've just stated wrong? How exactly is another company selling a similar product at a much lower price point good for the company? Perplexing position that somehow introducing a much cheaper product into the market from company B is good for company A.

> How exactly is another company selling a similar product at a much lower price point good for the company?

It's good for the economy. And it's good for other companies, that you haven't mentioned. There's more than two companies in the market.

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