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“Credit Points the world economy will have to work under a special
arrangement for alternate money which can be used in domestic as well as
international market. Credit points are like transferable bonds and need
approvals of state financial authority.”
Rules of Economy
• Any entrepreneur is responsible towards its employees and investors and
vendors and associates and buyers and end users.
• Any entrepreneur is responsible for all business plans and expansions
• An entrepreneur is liable for any misadventure which cause loss to
investors and vendors and associates and buyers and employees and end
users
• An entrepreneur is responsible for any loss occurred to vendors and
associates and buyers and users happened due to poor management
• An entrepreneur operates in a market which is provided by state and
interest of entrepreneur cannot be placed higher than interest of state
• An entrepreneur is abide by any decision taken by the state in case of
default or business losses
• An entrepreneur is not allowed to earn exceptional profits and this is his
responsibility to inform state if the profit goes above certain limits
• An entrepreneur will create defense pool in custody of state to counter any
economic turmoil
4 State will act as crises manager and will charge for services
which will again paid as compensation for effected individuals or
organizations or groups or industry during cease
5 State can create a pool to safe guard different industries and
ask for contribution on the basis of their risk factor
6 State can control disaster fund which is been collected from
different industries or group or individual apart from taxes.
7 Disaster fund is the contribution made by different industry in
the form of tax or duty
8 Disaster fund unlike income tax levied on industries on the basis
of their risk element and volatility.
9 Profits can be restricted by state for any industry
10 State can ask to buyback a product or service and create
reverse marketing to control the damage.
Needs of Control
Situations
• In the market where prices fall due to over supply
• In the market where profits shrink result monitory loss to investors
• In the market which is been taken over by speculators
• In the market product or services undervalued
• In the market where shortage been created by suppliers
• In the market where holding capacity of industry or organizations or
suppliers or retailers fall down
• In the market where the chances are to get effected by outside sentiments
• In the market where recession is started
• In the market which is sensing recession
Explanations
State will play as facilitators and the industry will be managed by industry people
in controlled environment
Will state pay any price to the entrepreneur for taking over the
establishment?
In this situation the assets of the industry/establishment will be ceased for such
period. Entrepreneur can not claim any compensation or return on the assets
until state control the situation; as he failed to fulfill his social responsibility of
running the establishment.
Does it mean that the state will own all assets and liability of the industry
ceased?
State will never takeover or own the liabilities but state will manage the assets
and the liability of the industry for specific period. In the case of further losses the
entrepreneur will be charged for the same
Why entrepreneur will be charged for the further losses if the entrepreneur
is not controlling the establishment?
It is believed that the crises are resulted due to poor management or willful act of
the entrepreneur consequently makes the entrepreneur responsible for the same.
Can the industry/establishment raise the alarm and ask the state to
announce crisis situation?
Yes, the industry is also responsible to make state aware of internal situation and
ask for amnesty
Can there be more than one industry adopted by the state at one time?
As many as industries can be adopted by the state depending upon the situation
Is the state capable of pooling the resources for so many industries at one
time?
Limited restriction is the state of emergency and in the case of emergency the
state must take the charge to save small players, buyers and investors in the
market. It’s mandatory for the state to announce economic emergency and if
needed restrict other industry to create right balance
In global market is it possible to close the doors for any state as every
state is bound by so many international treaty?
In this situation state will have to give credit points to effected states and
renegotiate terms in new situation. Other states must realise that in open
economy all the markets are vulnerable and can effected by each other. Thus to
support other states in crises international market need to work on new
mechanism to giving credit points to each other for any adverse consequence on
other states too.
Example:
State A is importing handicraft from state B
State ‘A’ put restriction on handicraft import from state B
If state A and state B got some treaty than state A will give credit to state B of
approximate value of the losses to the industries of state B
State B will pass on the credit to the effected handicraft exporters
Handicraft exporters of the state B sell these credits to electronic exporters of the
State B
At present state A put import duties on the electronic goods imported from state
B
When exporters of state B export to state A than they can cash those credit
points for discounting their product.
Any new model can be adopted by both the states after mutual consensus
exporter want to redeem these credit points issued by US than the current value
of the dollar will be taken along with the yield.