What We Need In Foreign Trade!
Day 1,480, 14:31
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Published in USA 
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by
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by Saphire109
What We Need
Game Article On eRepublik Game by Saphire109
Free Competition
What we need in this e-country is free competition.
When anybody complains about unfair competition (consumers should be aware)
If foreign firms want to loose money by selling goods at a loss to eUSA why should we complain? Nothing would make any industry as powerful and productive by allowing the market to open up completely and realize which ones are unproductive and which ones make the most money.
E-American Raw Material is exported to many countries and we should have a 0% import tax so that you and I (the consumers) are allowed to buy goods which otherwise would seem unreasonably expensive.
Exchange Rates
There will always be more people looking to buy a currency than people willing to sell it. Over time governments with a low valued currency will be able to get the most trade.
Complete Free Trade Has Not Been Introduced In eRepublik Yet
The people who learn today may not be the people in charge of economic policy tomorrow. What we need is restraint from e-governments to interfere with free markets in foreign exchange and foreign trade.
Questions? Comments? Observations?
Game Article On eRepublik Game by Saphire109
Free Competition
What we need in this e-country is free competition.
When anybody complains about unfair competition (consumers should be aware)
If foreign firms want to loose money by selling goods at a loss to eUSA why should we complain? Nothing would make any industry as powerful and productive by allowing the market to open up completely and realize which ones are unproductive and which ones make the most money.
E-American Raw Material is exported to many countries and we should have a 0% import tax so that you and I (the consumers) are allowed to buy goods which otherwise would seem unreasonably expensive.
Exchange Rates
There will always be more people looking to buy a currency than people willing to sell it. Over time governments with a low valued currency will be able to get the most trade.
Complete Free Trade Has Not Been Introduced In eRepublik Yet
The people who learn today may not be the people in charge of economic policy tomorrow. What we need is restraint from e-governments to interfere with free markets in foreign exchange and foreign trade.
Questions? Comments? Observations?
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Comments
well since most of us are producers and consumers at the same time, changes in price do not effect us as much as it should.
Say for instance though you produce raw material and make 2,800 dollars whereas with the same money in a q5 factory you only make 310 dollars by selling your goods. Wouldn't it be better to buy factory goods at half the price given more people tend to sell finished than raw products?
hmm not sure I got that.
my point was: I produce food worth 1000usd. If prices were low then I would sell for say 750usd.
At the same time I buy tanks with that 1000usd. If prices were lower, I would make 750usd and buy tanks with that 750usd too. Since prices are lower I would be buying same amount of tanks with 750usd as I do with 1000usd.
your suggestion might somehow work if we had different tax rates for weapons and food, as well as wrm and frm.
even then depending on how they are taxed, either food or weapons producers would be screwed since the value of their produced good would be lower compared to product they buy
What this does is in essence clear out uncompetitive industries and make way for eUS to emphasize on the best money makers increasing our efficiency significantly.
Exactly bia, foreign firms would give us cheap factory goods which are an uncompetive industry whereas we can sell to them or internally the most productive things we have making us more competitive.
econ council for sure did some calculations on having different taxes for weapons and food. but since there's no difference between them atm, I'm assuming its not for the best
free trade does not work here
Is anyone going broke because there isn't enough competition driving prices down? I'm not. Join a commune if prices are too high. Good luck.