Economic model

It seems that some trades are always unprofitable while some always make a lot of money, which discourages me to get involved in particular corps. Also, it seems impossible to boost domestic demand despite population growth, which hampers the development of a more self-reliant economy (not billionism or total independence).

Any thoughts? Thanks!

Some corps are more consistent winners while others are capable of more profit but are more risky. I tend to build the more stable corps that produce products that are always in demand and are less reliant on on-demand purchases from players.

Boosting domestic demand is indeed possible. I do it. I gathered extensive data on this. My last public post on it is here:

https://www.simcountry.com/discus/messages/4969/25020.html?1438375568

thats not a discussion about corps efficiency, by definition,

<!-Quote-!>Quote:

Getting off topic, the answer is, yes, this was actually a thread about wages and their effect on LU economy. -Aries<!-/Quote-!>

how ever, in counter to that, look up "pissing contest" in the LU thread, to finalize my thoughts, from the first thread

Aries, WTH?

I am on Golden Rainbow so I'm not sure if LU is the same. But very enlightening thread on wages.

Currently my gov salary index is 242 and that of corp is around 281. Added to each by 3 just now.

Hope this indirectly boosts population spending. Just curious to know if there is some sort of 'formula' on population spending and salary index....

Mmm I once tried to boost health and education index to a much higher level but when they're too much above my level requirement that's just a waste of money.

Some more info: for my country local market contributes to only 28% of total import volume (20% for total export); common market 8% import 12% export; 64% of total import is from international market while 67% for total export.

Are these figures 'normal'? Is it fairly impossible to increase the % of local import to, say, 40% or more?

Contracts from your corps to your country obviously increase your export and import volume of your local market. There are a couple important things to keep in mind though. Producing products that are often in oversupply, and therefore cheaper, on your world just to import to yourself is an inferior strategy than just buying it from the world market.

Also, I have noticed that contracts seem to consume more of your monthly spending limit than orders from the world market. My guess is that contracts deduct an amount from the spending limit modified by product quality where orders from the world market do not. I have noticed in an environment where I pay higher wages and have a large population, if I contract more than 25% or so of my consumer demand, my spending limit disappears to the point it is difficult for my country to buy the products my people need on a monthly basis.

Thanks for the keen observation. I have set up some local contracts among corporations to ensure that they can sell off at least part of their products in case of depression. This also secures supply stability and boost country score.

The reason why I started this thread is because I've read something about trade balance recently. Japan has a huge domestic market (and so as Germany) though both are export-oriented economies. Also, France and Britain are suffering from trade deficit. France, for instance, has a growing difference between import (which is increasing) and export.

Is there any relationship between import and export volume as well as domestic market? Is it that by expanding domestic market, I can reduce export volume and hence gaining more economic independence? There is little academic theses or information when I type in keywords like 'domestic market' (or the like) on Google or some academic journal search engines. The interesting fact I notice, though, is that Japan has 70% or so of its domestic demand satisfied by local industries and yet it remains a strong exporter.

It seems that Simcountry is a bit different from the reality in the following: 1. given the lack of comparative advantage, some industries are 'doomed' to suffer from less oversupply; 2. Simcountry tries to promote international trade by a) level restriction on certain corps and b) requiring the opening of several more companies for each new industry engaged and 3. production capacity of corps usually far exceed local demand despite population boom.