ucers of that product. Diversified companies would have an easier time leaving a specific industry product because they have other product lines in which they do business. Economic Conditions and Forces The diversified computer industry has been subject to seasonal, quarterly, and annual fluctuations. These fluctuations can be caused by product developments, pricing, reviews and component availability. The diversified computer industry is subject to economic forces that could influence current and future profitability. The spending patterns of consumers are subject to prevailing economic conditions. The prevailing domestic and international economic conditions affect foreign currency prices and the amount that consumers are willing to spend. The industry is also subject to the liability of foreign taxes and foreign product sales. 1 Importance of Product Products used in the personal computer industry are very important. The concern for Y2K reflects the importance of the computer industry. The government, businesses, and individuals are concerned with what will happen to technology when the calendar turns to the year 2000. It is anticipated that there will be power disruptions, some water systems will not provide water, medical equipment will malfunction, etc. All the systems that are used to run the machinery and equipment used for the various processes contain technology produced by the computer industry. Therefore, the computer industry is very important because of the processes it helps to monitor and run. Proprietary Knowledge The safeguarding of proprietary knowledge is important in the diversified computer industry. Computer manufacturers rely on suppliers and other technology developers to stay abreast of the latest developments in PC technology. If computer manufacturers or their suppliers were unable to obtain licenses necessary to use protected technology in their products on commercially reasonable terms, these manufacturers ...
