ePH-eUSA Economic Comparison for Selected Industries, Day 1,199

Day 1,199, 16:24 • Published in Philippines USA • by PigInZen
Lower Efficiency, Higher Prices

I've decided to start publishing some economic analysis articles again, except this time I will be comparing economic conditions in the ePhilippines with those in the eUSA. I think the series will be somewhat enlightening and educational for those interested in how the economy of a smaller nation functions and what challenges small economies face when compared with their larger cousins. Let me point out that I will be approaching this from my personal perspective and will not be analyzing the both countries' markets in entirety. I am a niche producer and make Q5 food and weapons only in addition to the raw materials needed to supply those companies. I also own a stone company which is currently still producing stone but that product is subject to serious lack of demand in small nations, so while I will use it for comparison if it is an outlier from the other data it will be discarded.

One thing I've noticed off the bat: in real gold terms prices in the ePhilippines are higher. Much higher, much higher than can be accounted for by straight extrapolation via the production formula. The economy of a big nation like the eUSA has many advantages over a smaller nation such as a faster market and much larger aggregate demand. In addition to this basic market advantage the eUSA has higher bonuses towards production due to owning more resources.




Resource Comparison - A Breakdown

Of the ten resources the ePhilippines currently has access to only two: Fish and Oil. Because neither Grain nor Iron are present raw materials production doesn't receive the 25% bonus. Likewise food and weapons manufacturing receive only 5% of the potential 25% bonus because only one resource is available in each category: Fish for food and Oil for weapons.

The eUSA, in contrast, is fortunate to have bountiful resources. Grain and Iron production both receive the 25% production bonus due to the eUSA owning territory containing each resource. In addition the USA has eight of the ten resources lacking only deer and rubber and gains a 20% bonus for both food and weapons production.




How Resources Affect Production

I will use myself as an example. I'm a Guru**** and I have a basic productivity of 422 production points per work cycle. Because of the dearth of resources in the ePhilippines my production breaks down thusly:



Whereas if I still resided in the USA my production would look like this:



I've calculated the difference in percent based on the values for production in the ePhilippines and in the eUSA. The following table shows the ePhilippines production percentage if the USA production is equal to one:



To explain, for every 100 units of grain or iron produced in the USA we can produce 85 here. For every 100 units of food and weapons we can produce almost 91 here. We're less efficient, it's simply a fact. This difference in production should account for a slight increase in price for grain, iron, Q5 food and Q5 weapons in the ePhilippines compared to the eUSA but not as much as we currently have:



Notice that we're currently CHEAPER than the eUSA for grain in gold terms (HUZZAH!) but that we're woefully overpriced by almost 14% for iron and severly overpriced for Q5 weapons (32😵 and Q5 food (over double the price).




Here's What I'm Going to Do About This

I feel pretty strongly about trying to remain competitive price-wise with larger economies like the eUSA so... I've thought a bit about this and have decided to provide product for sale at a price in parity with those found in the eUSA. Yes, this means I will be selling iron and grain for 0.09 PHP per unit, Q5 food for 5.69 PHP and Q5 weapons for 54.03 PHP. I will eat the cost of the production deficit that I outlined above. I don't expect that company owners will be thrilled by this but those that need grain and iron for production as well as those that purchase high end niche food and weapons products will be. As always, feel free to send me your nastygrams and comments.

Why would I do this? It's simple. Right now I do not employee anyone and simply work for myself as owner in all of my companies. My cost of production is so low that I can still turn a nice tidy profit even at these prices. A serious profit, actually but that's a subject for my next issue of these economic articles in which I will point out the economic value in owning companies and working in them as and owner...

Until then let me close with this:






Maka-Diyos, Maka-Tao, Makakalikasan at Makabansa

For the Love of God, People, Nature and Country!