A practical and easy way to implement bankruptcy
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by Vincent Garibaldi
The following is a copy of my open letter to the admins, which you can find here:
http://www.erepublik.com/en/forum/topic/85244/a-practical-and-easy-way-to-implement-bankruptcy/1#post923569
There are a multitude of reasons we need bankruptcy, including raw materials companies set up in resource poor regions, increased competition, limited labor pool (e.g. Thailand, Pakistan, Mexico, Japan, etc.), changes in tariffs, et al.
The simplest way to fix it is to allow a quality downgrade from Q1 to Q0, where Q0 companies are simply deleted from the system. Upon bankrupting the company you could get 10 gold back, which would be suitable encouragement to bankrupt any truly uncompetitive business. I think that this would help out quite a few economies, especially small ones, but also larger ones with almost 10 pages of companies for sale.
While I'm at it, you should also be able to "withdraw" from a market, by getting rid of an export license, once again for 10 gold. I've seen quite a few companies with useless export licenses, either because the country's prices or tariffs have changed, or because the country has entirely ceased to exist.
Thank you,
Vincent Garibaldi, Citizen and businessman of the new world
Signatures, comments, votes, subscriptions, and ideas are always welcome.
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Comments
Good Idea!
🙂
I like the idea. But the gold amount should be lowered to 7 or 6 gold, since that way it would only encourage businesses who are truly going out of business or just plain dunzo (bro term for done/finished), to file for bankruptcy.
Brilliant
Fabulous idea! I hope the admins decide to implement it.
@Talia
Bonus points...
this is a good idea, voted
I like this idea, voted.
I can see getting something back for putting your company out of business, but export licenses are a different thing. It could be argued that the company has tangible possessions that can be sold to recoup the money, but an export license does not.
In business, import/export is considered a risk in and of itself, and owners have to accept that risk.
Sounds like a good starting point Vincent. I do like how this addresses the huge amount of companies for sale etc. I tend to agree with Carthage regarding the licenses though.
I wouldnt give anything bank on trade licenses since thats part of the risk in buying them but Id support your cashback on the buisness plan.
The amount received back should be controlled by the government of the country the company operates. Democratically it just makes sense. Also, if there are unforeseen consequences or events (such as currency devaluations), government control would prevent potentially ruinous capital flight.
Good idea.
Voted.
ya
I'd endorse this except for the license. If they bought a license, tough luck. I paid 20 GOLD for my Spain license, made about 10 GOLD off of it, and they raised their embargoes. Will I cry? No, it's part of business. No one else should be reimbursed for export licenses.
A bankruptcy option, regardless, would be a fabulous option though.
Very good idea. You got my vote
Fantastic idea.
It could be implied that an Export License includes cargo ships. I mean, yes, there are legal agreements that cannot be sold off as they are not tangible assets. But how are you getting your products to a market that is on the other side of the Atlantic Ocean? Maybe you own a cargo ship or two. Those could be scrapped to get some of your investment back.
As to why... maybe you bought the license 8 months ago when you could not have foreseen the two countries going to war.
Why should your company suffer when two governments can't keep their heads on straight without shooting at each other?
Well said Vincent.
I'm especially please with the ability to remove lame companies from the game. They just clutter up the companies for sale page.
Nicely done, I agree.
voutéd
Voted!
Very nice idea!
Very nice! I learned something new! Good work!
I support this idea. If we can downgrade - why not eliminate also.
voted
Why would you be paid 10 gold for failing at a business?
I like the bankruptcy idea a lot, especially because it would help countries with small labor pools.
But I don't think companies should get money back from export licenses. You made the wrong bet, you paid for it, and that's that.
voted like it
Video Jack: That's why it's called risk. You shouldn't...but you do.
Yes good idea I have thought something like this should be implemented as well. There needs to be a practical way to get rid of useless companies.