The second item the political system prefers to target as a bill-payer in defense downturns is the actual production of weapons, because political impacts tend to be localized even when the programs employ thousands of workers.

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While we cannot forecast with certainty the duration of the energy crisis in Thailand or its actual impact on production capacity, we can recommend some proactive steps that companies should take to better prepare themselves and their suppliers for these types of disruptions in the future.

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The clerisy labors largely in offices and has no contact with actual production.

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It should be noted that, simply by tabling their proposals, and without having to effect actual reductions in their military spending or their weapons production, the Soviets have already had considerable successes under Gorbachev in interfering with U.S. and NATO defense programs.

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It is convenient to account for both oil and gas in terms of the energy equivalent of a barrel of oil, although actual North Sea oil production has fallen from just above 3 million bpd in1979 to just over one million bpd now.

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Determining the actual marginal cost of production is somewhat tricky since the commodity is priced globally in dollars, but the bottom lines for South African mining companies are ultimately determined by the price they receive in South African rand, with their expenses also paid in rand.

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As for the actual production, Wal-Mart, where more than 50% of its business comes in the grocery aisles, would probably use the same roster of companies that make its store-brand products.

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