The Age of Master Traders ......
Graf Sprat
Three days back I wrote an article in the MoF paper about how irrelevant the import tax has now become.
http://www.erepublik.com/en/article/the-death-of-import-tax-why-it-doesnt-matter-anymore-1713393/1/20
Irrespective of that, there were a spate of import tax modification proposals in the Indian congress. Some were voted in and some were not. As an MoF, I am not going to bother about getting them to a common base. Why? Because it really doesn't mean a thing anymore.
To understand how true that is, all one has to do is to open the Indian market screen and lookup the offers under higher Q categories. A host of offers are from people who dont even own the companies of that Q level.
Folks are simply using their orgs in countries where these goods are available at a cheaper price to buy and are donating it to their citizen account in their home country. And from there, they are listing it on the market at extremely competitive price. The import tax simply doesnt come into play. Isnt that nice ? The customer gets the cheapest price.
However this does impact the currency of the country as Sharry and other proponents of high import tax always reminded me while pressurizing the govt to increase import taxes . The reason had been that if foreign goods are sold in India, that leads to flight of gold from India to foreign countries and Indians dont have enough gold for boosters 😉
But looks like this change from admins have convinced them also that cheaper goods from abroad is a good idea since I see a lot of them listing Q5 products on the Indian market without having companies of that Q level. Well the lure of easy money is generally hard to resist. 😉
So it looks like we are moving from the age of Company Czars the age of Master Traders. The smaller countries like eIndia will now need to start looking towards alternate source of taxes such a VAT since on goods being sold like above, the country would neither make income tax (during their production) nor import tax during their import into the country
Which means that the trend of equalization has already started. Net Net, the admins have forcefully removed the import barriers from across the world. So slowly the absolute value of goods (in gold terms) across the world will gravitate towards a common value. And the value of a nation's currency will be driven mainly by its balance of trade.
Exciting times are certainly on the anvil..
Comments
lol
wat will happen when orgs will be removed?
some questions to mof
how many people will come to india just to sell goods when they can earn much more in other countries?
why is our gold price so high?
what are u planning to bring it down?
what is wrong when a country puts import tax when it can produce enough?
one question from me to mof
why are the salaries so low?
nice headline heh, reminds me of asimov's foundation 😉....+v
Abu, the sale of MTs will go up.. Travel to a cheaper market, buy low, come back to home country and sell high..
Luci, thats exactly where i picked it from. My kid's been reading the series these days. xD
lol we also pressurized to increase imports but that was mentioned
i guess mof is making us villans here 😛
@alay lol those questions are really questions and will have a big question mark coz i guess mof wont answer it 😛
@ ALAY
-how many people will come to india just to sell goods when they can earn much more in other countries?
As many as it takes to get the prices balanced out. At this time, the price of almost all goods are more expensive in India than markets like Poland, USA etc. A lot of Indians are buying from those markets and selling in India and making money on the margin.
-why is our gold price so high?
Why do you say its high?
-what are u planning to bring it down?
Nothing
-what is wrong when a country puts import tax when it can produce enough?
It encourages monopoly and discourages competition. However its all historical now. Import tax does not have any significance now.
@Mustang007
One question from me to mof
why are the salaries so low?
I think, this is a question for the company owners.. Unfortunately, i just own 1 company and that too is in a shut down condition.
If import taxes dnt matter then plz make it 99 %..........
lolz
then y are other countries having high import????
so how much for the giant ant?
Abhinay, they dont matter, thats why you are able to sell a q5 food in indian markets without owning a q5 food company...Did you buy it in Poland or Spain?? 😉
Make import taxes whatever you want them to. Unless there is a change to prevent this trading, import taxes means jack shit now..
xD
Abu, how much are you willing to offer ??..lol
abu dp this /me grabs dick
In the nutshell, we are moving into an age of doom of erep.
Actually, if you look at it objectively, the economics in eRep is evolving a bit like how it evolved in the real world..
@ Graf - your kiddie reads Asimov - Foundation!!! how old is he??!!! he must be a prodigy! : )
o7
Ash, she is 9.. Just got her on to the foundation series.. 🙂