[Economics: How Do We Do It?]
Day 575, 21:11
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Published in USA 
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by
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by Ian John Locke IV
[Intro]
So I've recently become a Mentor again. I had a new player ask if he could hire me, since in my introduction message I mention that I own a company. The fact is that I own a Q3 Raw Materials Company, in a Medium area considering that New Jersey's Iron Resources. For a new player, Q3 is no place to work, and for me as a business owner, Q3 would not be profitable with a skill level 0 working there. Also, recently, I've found myself answering some economics questions that I didn't realize I had the answer to until I was asked them. This made me realize, "Damn, I'm a rich Beta Giant."
I own a highly profitable Q3 Iron Company in New Jersey. I run it by paying my employees exactly what I can afford which, as the Job Market has turned out, is now more than anyone else is willing to even offer.
This begs the question, "How do you do it Ian John Locke IV?"
[How I Do It]
I have invested a great deal of time, effort and a bit of my in-game money into Trenton Iron. How have I made it so successful? Here's how:
I monitor the monetary markets of nations and buy export licenses to countries with practically no market for my product with low import taxes. I hire high skilled workers to ensure maximum efficiency. I watch the markets of the foreign countries and the US and use simple calculations to figure out where I should be selling my Iron on that particular day. I market my iron effectively.
Here some helpful tips to do these seemingly daunting tasks every day.
[How Do You Monitor Foreign Monetary Markets?]
Well, the more developed a country, or rather the longer it has been around, the more stable its currency is likely to be, especially if it is monitored and adjusted by the government as the USD is.
Those currencies just take a simple check up. The newer countries are the ones to watch and for more reasons that one. But one thing at a time.
If a currency is unstable, it may be tempting to play the markets with it to see if you can profit from it. This, however, is not something you should risk with your company's assets. Personal money, why not, you can always get another hard worker award or a super soldier or run for congress.
This brings me to my first rule of thumb:
Once the money is in the company, keep it there, it will keep earning interest, itself
Search the money markets for countries that have a higher dollar value than ours. Those will always be a best buy for exports. Currently, and for the the foreseeable future, 1 USD will be worth 0.02 Gold. Any currency that is worth more gold, is a good country to start out with.
The next step is to monitor import taxes.
[How Do You Monitor Import Taxes?]
This takes the least work of all. You can look at that country's import taxes by looking at their economy page like the USA's.
General 20% and lower is easy to compete in. The lower the import taxes, the easier to compete with native companies, but the harder to compete with other comapnies exporting to that country.
[How Does All This Fit Together?]
So let's take an example:
Right now on the US market, Q3 Iron is around 2.33 USD * 0.02 Gold = .0466 per piece
Right now on the Swedish market, Q3 Iron is around 2.25 SWE * 0.026 Gold = .0585 per piece
Right now on the Singaporean market, Q3 Iron is around 2.04 SGD * 0.02 Gold = .0408 per piece
You might look and notice that the offer on the Swedish market is actually 2.2725 SWE and is from, coincidentally, my company, Trenton Iron. It is 2.25 SWE because the import tax is 10%.
In Singapore, the Q3 is at 2.45 SGD and is being sold by a Brazilian Country. Therefore, with 20% import taxes, 2.45 means approximately 2.05 SGD is the offer.
I think you can all grasp that 1 USD = 0.02 Gold, 1 SWE = 0.026 Gold, and 1 SGD = 0.02 Gold.
That shows you that the Swedish market is the best place for me to be offering to sell my Q3 Iron.
I have 356 pieces of Iron in my company that are for sale on the Swedish market making it 20.826 Gold that I will receive, in SWE. This, when converted to USD will be equivalent to 1041.30 USD and I have almost 300 USD still in my company.
When I upgraded from Q2 to Q3 a couple months ago, I had only the export license to Sweden and 450 USD in my company accounts.
So with simple math, I have just about tripled what I had in the company in the first place.
If you can see, the simple math was just multiplication and a bit of division, all of which can be done on a calculator, or, if you're quick enough, in your own head.
The simple formula I promised? Math = profit.
Ok no really, here are some abbreviations for you
CLO = Current Lowest Offer (or what you plan to sell your product for, per unit)
CFER = Current Foreign Exchange Rate (1 Currency Unit = X.XX Gold)
CDER = Current Domestic Exchagne Rate (1 USD = Y.YY Gold, usually 1 USD = 0.02 Gold)
IMP = Foreign Import Tax (In decimal, e.g. 20% = 0.20)
Use
CLO * (1 + IMP) to figure out how low you must price yourself to be the lowest offer.
CLO * CFER CLO * CDER to figure out how much gold each piece will be worth and compare it against your other markets
If you want to convert your foreign currency to USD to see how big a difference it is in USD use this
(CLO * CFER)/CDER
That converts it from the foreign currency to gold and then from gold to USD in one calculation.
Now was that so bad?
So I've recently become a Mentor again. I had a new player ask if he could hire me, since in my introduction message I mention that I own a company. The fact is that I own a Q3 Raw Materials Company, in a Medium area considering that New Jersey's Iron Resources. For a new player, Q3 is no place to work, and for me as a business owner, Q3 would not be profitable with a skill level 0 working there. Also, recently, I've found myself answering some economics questions that I didn't realize I had the answer to until I was asked them. This made me realize, "Damn, I'm a rich Beta Giant."
I own a highly profitable Q3 Iron Company in New Jersey. I run it by paying my employees exactly what I can afford which, as the Job Market has turned out, is now more than anyone else is willing to even offer.
This begs the question, "How do you do it Ian John Locke IV?"
[How I Do It]
I have invested a great deal of time, effort and a bit of my in-game money into Trenton Iron. How have I made it so successful? Here's how:
I monitor the monetary markets of nations and buy export licenses to countries with practically no market for my product with low import taxes. I hire high skilled workers to ensure maximum efficiency. I watch the markets of the foreign countries and the US and use simple calculations to figure out where I should be selling my Iron on that particular day. I market my iron effectively.
Here some helpful tips to do these seemingly daunting tasks every day.
[How Do You Monitor Foreign Monetary Markets?]
Well, the more developed a country, or rather the longer it has been around, the more stable its currency is likely to be, especially if it is monitored and adjusted by the government as the USD is.
Those currencies just take a simple check up. The newer countries are the ones to watch and for more reasons that one. But one thing at a time.
If a currency is unstable, it may be tempting to play the markets with it to see if you can profit from it. This, however, is not something you should risk with your company's assets. Personal money, why not, you can always get another hard worker award or a super soldier or run for congress.
This brings me to my first rule of thumb:
Once the money is in the company, keep it there, it will keep earning interest, itself
Search the money markets for countries that have a higher dollar value than ours. Those will always be a best buy for exports. Currently, and for the the foreseeable future, 1 USD will be worth 0.02 Gold. Any currency that is worth more gold, is a good country to start out with.
The next step is to monitor import taxes.
[How Do You Monitor Import Taxes?]
This takes the least work of all. You can look at that country's import taxes by looking at their economy page like the USA's.
General 20% and lower is easy to compete in. The lower the import taxes, the easier to compete with native companies, but the harder to compete with other comapnies exporting to that country.
[How Does All This Fit Together?]
So let's take an example:
Right now on the US market, Q3 Iron is around 2.33 USD * 0.02 Gold = .0466 per piece
Right now on the Swedish market, Q3 Iron is around 2.25 SWE * 0.026 Gold = .0585 per piece
Right now on the Singaporean market, Q3 Iron is around 2.04 SGD * 0.02 Gold = .0408 per piece
You might look and notice that the offer on the Swedish market is actually 2.2725 SWE and is from, coincidentally, my company, Trenton Iron. It is 2.25 SWE because the import tax is 10%.
In Singapore, the Q3 is at 2.45 SGD and is being sold by a Brazilian Country. Therefore, with 20% import taxes, 2.45 means approximately 2.05 SGD is the offer.
I think you can all grasp that 1 USD = 0.02 Gold, 1 SWE = 0.026 Gold, and 1 SGD = 0.02 Gold.
That shows you that the Swedish market is the best place for me to be offering to sell my Q3 Iron.
I have 356 pieces of Iron in my company that are for sale on the Swedish market making it 20.826 Gold that I will receive, in SWE. This, when converted to USD will be equivalent to 1041.30 USD and I have almost 300 USD still in my company.
When I upgraded from Q2 to Q3 a couple months ago, I had only the export license to Sweden and 450 USD in my company accounts.
So with simple math, I have just about tripled what I had in the company in the first place.
If you can see, the simple math was just multiplication and a bit of division, all of which can be done on a calculator, or, if you're quick enough, in your own head.
The simple formula I promised? Math = profit.
Ok no really, here are some abbreviations for you
CLO = Current Lowest Offer (or what you plan to sell your product for, per unit)
CFER = Current Foreign Exchange Rate (1 Currency Unit = X.XX Gold)
CDER = Current Domestic Exchagne Rate (1 USD = Y.YY Gold, usually 1 USD = 0.02 Gold)
IMP = Foreign Import Tax (In decimal, e.g. 20% = 0.20)
Use
CLO * (1 + IMP) to figure out how low you must price yourself to be the lowest offer.
CLO * CFER CLO * CDER to figure out how much gold each piece will be worth and compare it against your other markets
If you want to convert your foreign currency to USD to see how big a difference it is in USD use this
(CLO * CFER)/CDER
That converts it from the foreign currency to gold and then from gold to USD in one calculation.
Now was that so bad?
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Comments
😃 Nice one!
one question. If i sell to swede uncle sam still take 20% of my money? thank you
Thanks Ian, very helpful!
This is the textual equivalent of giving away some free gold coins to business noobs. Very generous.
Great to see this being put out there, its kind of like giving away business secrets 😛 Very generous of you Ian.
Voted.
Excellent article.
Great information!
Very helpful, Ian, thanks. As a new business owner I was on my way to sorting this out for myself but now you've gone and given me a handy reference sheet. Thanks again.
voted, already subscribed 😃
motanel there are ways to not lose your money to income taxes. They are technically (by eUSA law) illegal, as it is after all tax evasion, but when you sell you do not automatically lose 20% on income, you only lose the 20% when you try to pull the money out.
Good work Ian!
I love this article, Ian. Great job! Very cool of you to write this up.