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COPYRIGHT 2004 Newsweek, Inc. All rights reserved. Any reuse, distribution or alteration without express written permission of Newsweek is prohibited. For permission: www.newsweek.com
Byline: Barney Gimbel
Dave Mudrick, President of Lasergifts.com, a distributor of personalized redwood pens, silver keychains and the like, knew something was up when his competitors started cutting their prices sharply. After all, he and his rivals typically used the same U.S. factories. He nosed around and learned they were outsourcing to China. He knew he had to follow suit. "It was a scary thought," Mudrick says. "Send money abroad and hope some product arrives a couple months later."
It's easy to understand his reluctance. Although...
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