[Gov] B.A.D. Newsletter #1
Day 726, 16:41
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Published in Thailand 
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by
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by Thingol
Welcome back, Thailand!
Now we have it back. Thailand is whole again. Why don't we cheer?
Did we want all these regions back? No, at least not yet ... because:
During the FRoSEA months, the economies of Malaysia and Thailand have grown together. Thailand has brought a lot of companies into the Union, and Malaysia has had a very nice baby boom. Each country for itself is unbalanced. At the moment the situation is not critical, as residents of Malaysia can keep their jobs at a Thai companies for an unlimited time. What Thai company managers already notice is that they cannot easily sell their goods on the Malaysian market because the import tax of 30% on the most common goods makes our offers uncompetitive (or causes us to sell at loss). Today Malaysia has about 1300 residents, and Thailand has less than 300. Thus we are cut off from the major part of the FRoSEA's market, while having 82 companies compared to Malaysia's 141. (Source)
But believe me, selling the goods in Malaysia is not the major problem. First of all, import taxes can be modified easily. Second, there are more markets in this world. The major problem will arise when slowly one after the other resident of Malaysia quits his job at a Thai company and can of course not come back but will accept a job at a Malaysian company. I fear that we will simply not have enough workers. Our less than 300 people can operate between 20 and 25 of the 82 companies. In a situation like this, the free market system has a disadvantage over a planned economy. Everybody wants to keep his company up and running. Well, maybe not everybody, but more than 25. This will result in a phase of fighting for workers, with a high probability to mess up the job market with much too high salaries and thus making all our companies uncompetitive. You may ask why we need to be competitive. If employees earn a lot of money, they can afford the expensive products. True, but the economic model of eRepublik is creating an ever increasing overproduction, and only competitive countries can sell their part of the overproduction on the world market.
There we have it. It is a real problem. Nowadays you don't call it problem, but challenge. Still it calls for a solution. I have already a few ideas, but don't hesitate to post comments to this article. Your ideas might be better than mine! I will follow up this topic in the next B.A.D. Newsletter.
Now, what is the B.A.D. Newsletter?
Purpose of the B.A.D. Newsletter
I hope that you have read my introductory article. The B.A.D. Newsletter covers the Business Advice and Development part. At the beginning I will publish information about the most profitable products and hints for suitable export markets. This information will regularly be updated and probably extended over time.
Most profitable products
This analysis covers manufacturing goods and houses, as these industries are best suited for Thailand.
Description of my research method (You may skip this part if you do not want to read the whole article)
I have collected today's fifth-cheapest world market prices for each product and the necessary raw material (fifth-cheapest because the cheapest offers sometimes are garbage) and calculated from this the maximum salaries of employees under the following conditions:
Company efficiency: on average one employee is missing, resulting in 9 for manufacturing and 19 for houses
Company profit: 5%
Capital cost: Not taken into account!
Skill/Wellness distribution: 1.25/45, 2.25/50, 3.25/55, 4.25/60, 5.25/70, 6.25/80, 7.25/90, 8.25/90, etc.
(explanation:
a) When hiring a skill 3 employee , he will more likely be at the beginning of skill 3 than at the end of skill 3.
b) Older employees with higher skills have a higher probability to keep their wellness high with war games or houses.)
Q2-Q5 moving tickets are useless and thus not evalutated.
Q2-Q5 gifts have the same profit value as Q1 gifts (not exactly, because higher quality levels give the customer an easier handling, but nearly the same)
Results
1. Q5 houses
2. Q5 weapons and Q5 food
3. Q4 houses
4. Q4 weapons
5. Q4 food and Q3 houses
6. Q3 food and Q3 weapons
7. Q2 weapons and Q2 houses
8. Q1 weapons and all gifts
9. Q1 tickets, Q2 food, and Q1 houses
10. Q1 food
Ideally, we would only produce as much food as we need to ensure that nobody starves, and have all other citizens work in Q5 houses, Q5 weapons, and Q5 food companies. Alas, upgrading a company to Q5 is quite expensive.
Advice
I. Do not start a new company. Better team up with friends, purchase a company off the market, and upgrade it to at least Q3 (except tickets and gifts).
II. If you have a Q2 food company, upgrade it to Q3 asap.
III. If you have a Q1 weapons company, don't upgrade it to Q2. Let the money work somewhere else in the meantime and then upgrade it to Q3 asap.
Recommended export markets
Based on price level, import taxes, population, and my personal feeling of political stability I recommend today ...
Q2 houses: Spain
Q3 weapons: Portugal
Q1 tickets: Canada, Greece
Q3 foo
gifts: Uruguay
Other recommendations upon request!
Epilogue
If you have not already seen it, please read my introductory article. It includes several requests to contact me on various topics, and the response has been zero so far ...
We are facing interesting times, but there is hope. And what's even better than hope? A plan how to move through these times! I am determined to work on this, but I need your contributions, too.
Now we have it back. Thailand is whole again. Why don't we cheer?
Did we want all these regions back? No, at least not yet ... because:
During the FRoSEA months, the economies of Malaysia and Thailand have grown together. Thailand has brought a lot of companies into the Union, and Malaysia has had a very nice baby boom. Each country for itself is unbalanced. At the moment the situation is not critical, as residents of Malaysia can keep their jobs at a Thai companies for an unlimited time. What Thai company managers already notice is that they cannot easily sell their goods on the Malaysian market because the import tax of 30% on the most common goods makes our offers uncompetitive (or causes us to sell at loss). Today Malaysia has about 1300 residents, and Thailand has less than 300. Thus we are cut off from the major part of the FRoSEA's market, while having 82 companies compared to Malaysia's 141. (Source)
But believe me, selling the goods in Malaysia is not the major problem. First of all, import taxes can be modified easily. Second, there are more markets in this world. The major problem will arise when slowly one after the other resident of Malaysia quits his job at a Thai company and can of course not come back but will accept a job at a Malaysian company. I fear that we will simply not have enough workers. Our less than 300 people can operate between 20 and 25 of the 82 companies. In a situation like this, the free market system has a disadvantage over a planned economy. Everybody wants to keep his company up and running. Well, maybe not everybody, but more than 25. This will result in a phase of fighting for workers, with a high probability to mess up the job market with much too high salaries and thus making all our companies uncompetitive. You may ask why we need to be competitive. If employees earn a lot of money, they can afford the expensive products. True, but the economic model of eRepublik is creating an ever increasing overproduction, and only competitive countries can sell their part of the overproduction on the world market.
There we have it. It is a real problem. Nowadays you don't call it problem, but challenge. Still it calls for a solution. I have already a few ideas, but don't hesitate to post comments to this article. Your ideas might be better than mine! I will follow up this topic in the next B.A.D. Newsletter.
Now, what is the B.A.D. Newsletter?
Purpose of the B.A.D. Newsletter
I hope that you have read my introductory article. The B.A.D. Newsletter covers the Business Advice and Development part. At the beginning I will publish information about the most profitable products and hints for suitable export markets. This information will regularly be updated and probably extended over time.
Most profitable products
This analysis covers manufacturing goods and houses, as these industries are best suited for Thailand.
Description of my research method (You may skip this part if you do not want to read the whole article)
I have collected today's fifth-cheapest world market prices for each product and the necessary raw material (fifth-cheapest because the cheapest offers sometimes are garbage) and calculated from this the maximum salaries of employees under the following conditions:
Company efficiency: on average one employee is missing, resulting in 9 for manufacturing and 19 for houses
Company profit: 5%
Capital cost: Not taken into account!
Skill/Wellness distribution: 1.25/45, 2.25/50, 3.25/55, 4.25/60, 5.25/70, 6.25/80, 7.25/90, 8.25/90, etc.
(explanation:
a) When hiring a skill 3 employee , he will more likely be at the beginning of skill 3 than at the end of skill 3.
b) Older employees with higher skills have a higher probability to keep their wellness high with war games or houses.)
Q2-Q5 moving tickets are useless and thus not evalutated.
Q2-Q5 gifts have the same profit value as Q1 gifts (not exactly, because higher quality levels give the customer an easier handling, but nearly the same)
Results
1. Q5 houses
2. Q5 weapons and Q5 food
3. Q4 houses
4. Q4 weapons
5. Q4 food and Q3 houses
6. Q3 food and Q3 weapons
7. Q2 weapons and Q2 houses
8. Q1 weapons and all gifts
9. Q1 tickets, Q2 food, and Q1 houses
10. Q1 food
Ideally, we would only produce as much food as we need to ensure that nobody starves, and have all other citizens work in Q5 houses, Q5 weapons, and Q5 food companies. Alas, upgrading a company to Q5 is quite expensive.
Advice
I. Do not start a new company. Better team up with friends, purchase a company off the market, and upgrade it to at least Q3 (except tickets and gifts).
II. If you have a Q2 food company, upgrade it to Q3 asap.
III. If you have a Q1 weapons company, don't upgrade it to Q2. Let the money work somewhere else in the meantime and then upgrade it to Q3 asap.
Recommended export markets
Based on price level, import taxes, population, and my personal feeling of political stability I recommend today ...
Q2 houses: Spain
Q3 weapons: Portugal
Q1 tickets: Canada, Greece
Q3 foo
😛Peru
gifts: Uruguay
Other recommendations upon request!
Epilogue
If you have not already seen it, please read my introductory article. It includes several requests to contact me on various topics, and the response has been zero so far ...
We are facing interesting times, but there is hope. And what's even better than hope? A plan how to move through these times! I am determined to work on this, but I need your contributions, too.
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Comments
Advertise workers needed and huge wages, pay tickets to newbies (like me) to move, and we will have a thriving economy again.
Importing workers never really panned out to well in the past because Thailand is a niche community. Either you love it here or are bored to death. It is costly to retain foreign workers and entice them to jump ship only to have them go back where they came from or somewhere else within a short time.