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The Economical Module concerns everything related to production of good and finance. It is various and contains different parts.


Production Cycle

Unlike in real life, citizens are the basis of the economy. Once a citizen has joined a company, he is be able to work for it, produces goods and receives a remuneration paid with local currencies (such as BEF). This money can be used for several things but the main use is to buy food and weapons.





State and Taxes

The state requires money for different things, mainly related to the military module, as for instance Mutual Protection Pacts, paying the wages of its soldiers,...

There are different ways to rise funds, such as donations, but the main way is through taxes. The congress has the ability to settle taxes on different transactions, sales and wages. These are the ones in red in the previous picture.

There is also a different kind of tax : the import tax. This tax is added when people want to sell goods in foreign countries (this requires an export licence) and it is considered in addition to the Value Added Tax. Import taxes vary depending on the country but they are usually high.


(Import taxes are at 99% in this example)

The congress also defines the minimum wage level.

Products

There has been a lot of modifications across time but there are currently mainly four products exchanged on the market: Foods, Weapons and their associated Raw Materials.

Food is used to provide wellness.
Weapon is used to increase damage (up to 100😵 in battles.
Weapon and Food Raw Materials are required to produce Food and Weapons.



Currencies

Currencies are used for three different things:

1: Buy consumable products
2: Buy Buildings and Companies
3: Buy extra-features and Military Skills

There are three kinds of currency:

1: The Community Currency (as BEF) used to buy products on local market. Moreover, some buildings and lands can only be bought with CC. Some governmental features as Mutual Protection Pact are also paid in CC.
2: The Gold which is considered as the benchmark on which the CC are compared. It is used to buy Companies that cannot be bought with CC, to train your own military skill...
3: The Loyalty Point is not really a currency as it is not exchangeable between players. Moreover the only way to acquire LP is to buy gold. However, like other currencies, it allows to buy products and buildings (some being exclusive).

Gold and CC can be traded through the Monetary Market or through direct donations.



Companies

Companies are the most expensive features of eRepublik even though some can be obtained for very low values (but their low productivity makes them inefficient and thus they should never be bought).

There are two different kinds of companies : The Raw Material Companies and the Finished Product Companies. For those two kinds, 5 levels of quality exist.

The production is done in two steps. You produce the Raw Materials on the first step. Then those RMs are used by the FP Companies to produce usable items.



Markets
Markets are used to trade. We mainly distinguish:

Job Market: Where you can find employees or a job.
Monetary Market: To exchange CC and Gold.
Marketplace: To buy Finished Products, Raw Material and Companies.
Black Market: Unofficial and not backed up by the eRepublik team (so there is a risk), it allows players to buy or sell products without taxes.



Monetary Flux

The amount of money on the market is not fixed and varies through time. The main causes of those changes are:

Monetary Creation:
-Medal Rewards (5 gold for every Medal earned)
-Level Up Rewards (1 gold for every level)
-Admin “Secret” Bot buying products from the market
-Gold Purchase
-State Money Printing (cost 1 gold for 200 CC)


Monetary Deletion:
-Mutual Protection Pact
-Resistance War
-Military Training
-Health Kit
-Building Construction (and lands)
-Moving around the world
-Declaration of War

A small note: due to last in game evolutions, the last element of both lists are no longer used.



Miscellaneous

The EM has been created from a capitalist economical point of view. However there are other ways to process.

For instance there are groups called communes paying the minimum wage to their workers and preferring to give them their production, avoiding the state taxes and maximizing the production. This system is widely used in structured groups as armies for instance.

There are also other structures for company properties like multiple owners. This used to be facilitated by the use of Organizations that were non-playable accounts allowing to hold companies and goods on it. Those organizations still exist but there are more and more restrictions on them as time goes by.