StrendReich
21-02-2005, 22:06
StrendReich's Minister of Trade has recently alerted the international media that it is looking for a solution to its international trade equity agreements. The current system is costing the nation an inordinate sum of money, and is in serious need of overhaul due to a lack of appropriated funds.
Lenden Seizer, the current Minister of Trade, had this to say. "Our country has in place a system where up to fifty percent of the government budget is directed by the people, so they may direct funds to government agencies as the public assigns their value. For the past few years, less and less money has routed to the Office of Trade Equality. After conducting several polls to discover the problem, it is now apparent that the process for determining trade equity and the procedure itself wastes an inordinate number of Measures that taxpayers feel are needed elsewhere. By far and large, the people of StrendReich believe the current system to be outmoded and inequitable."
"Therefore, since this is a matter that affects our foreign neighbors, StrendRiech has decided to open this matter up to outlying nations for discussion and action. Interested nations may review the FAQ on our current situation (OC: included below) and propose a new method for handling Trade Equity. As an aside, StrendReich is offering a bounty for the nation that provides the best solution usuable with our current technology (OC: 2004 tech)."
"It should be noted that at this time, we are simply looking for ideas. StrendReich has the capability to set the plan in motion ourselves, so we are not seeking outsourcing or donations/selling of new equipment to handle the changes."
According to Lenden, Strendreich will keep the offer open for one month before deciding on which methodology to incorporate.
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Strendreich Trade Equity Analaysis v3.35A
Attachment: Office of Trade Equity National Poll removed
Attachment: Office of Trade Equity Budget removed
Attachment: Minister of Trade emergency meeting notes removed
Attachment: Foreign Nation FAQ retained
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Subject: Trade Equity
Definition: A manner of taxing outside business entities for goods and services produced outside of the nation of StrendReich.
Current Methodology: 7 + 2 steps (2 steps appended: Squire of Trade)
Step 0) Nation or corporation applies to sell goods or services in StrendReich (appended: Squire of Trade)
Step 1) A Trade Assessor is assigned to client from StrendReich
Step 2) Nation or corporation supplies base costs to produce item, monthy sale figures and average (mean) pay rate for employees on a monthly basis. The cost per item is referred to as the Foreign Sale Value.
Step 2.5) Sales figures and employee pay is verified by Trade Assessor. Corporations or nations who misrepresent figures are denied to trade with StrendReich until correct figures are supplied. (appended: Squire of Trade)
Step 3) Information is entered into a national database by Trade Assessor. Some corporations/nations supply the information in electronic format
Step 4) Employee monthly pay rate is compared against Strendreich average monthly pay rate. Difference in pay rate is multiplied by # of items sold in a month (from sales figures in #2). This is refered to as the Adjustor Rate
Step 5) The Adjustor Rate from Step 4 is added to the monthly sales figure from Step #2. This is referred to as the Equitable Value of the item in question.
Step 6) The Equitable Value from Step 5 is divided by the number of items sold (from sales figures is Step #2). The result is referred to as the Equitable Sales Value.
Step 7) A tax is applied to the item equal to the difference of the Foreign Sale Value (from Step #2) and the Equitable Sales Value. This tax is paid by the foreign corporation/nation.
Problems:
1) The current system is cumbersome and requires manual entry of most items. Those nations/corporations that submit electronic information to StrendReich often use custom formats that must be converted before they are entered into the national database.
2) A Trade Assessor is required to handle each seperate nation or corporation (due to volume of transferring/verifying information) and often requires a liason on the Corporation or Nation side as well.
3) Funding is dwindling while at the same time costs to keep the system functioning are rising. Currently the system costs $1,500,000 Measures per month to work at full efficiency. Current funding is at $125,000 Measures per month. (see: Office of Trade Budget - n.b.:removed)
Solution: Offer participating corporations or nations and interested parties to provide detailed plans for simplifying and streamlining system. Offer a bounty equal to one year's worth of savings to the best solution that can be implemented.
StrendReich will prepare a cost-analysis study of each methodology proposed and grant the bounty to the most cost-effective solution broached after one month of review.
Considerations: The following factors should be kept in mind when proposing a new system:
1) Not all participating Corporations/Nations currently have access to up-to-date computer technology. Several minor corporations/business enties do not have access to compatable computers at all.
2) The current system taxes items capable of being produced inside of StrendReich as well as items that currently cannot be created inside of StrendReich. The new system must strive to reward nations/corporations who produce items StrendReich cannot produce itself.
3) The new system must promote equitable trade between StrendReich and the foreign nation/corporation. StrendReich will not consider any plan that promotes companies to profit by basing their workforce on foreign soil. We are not interested in promoting "cheap labor" that demeans the work force.
Lenden Seizer, the current Minister of Trade, had this to say. "Our country has in place a system where up to fifty percent of the government budget is directed by the people, so they may direct funds to government agencies as the public assigns their value. For the past few years, less and less money has routed to the Office of Trade Equality. After conducting several polls to discover the problem, it is now apparent that the process for determining trade equity and the procedure itself wastes an inordinate number of Measures that taxpayers feel are needed elsewhere. By far and large, the people of StrendReich believe the current system to be outmoded and inequitable."
"Therefore, since this is a matter that affects our foreign neighbors, StrendRiech has decided to open this matter up to outlying nations for discussion and action. Interested nations may review the FAQ on our current situation (OC: included below) and propose a new method for handling Trade Equity. As an aside, StrendReich is offering a bounty for the nation that provides the best solution usuable with our current technology (OC: 2004 tech)."
"It should be noted that at this time, we are simply looking for ideas. StrendReich has the capability to set the plan in motion ourselves, so we are not seeking outsourcing or donations/selling of new equipment to handle the changes."
According to Lenden, Strendreich will keep the offer open for one month before deciding on which methodology to incorporate.
-------------
Strendreich Trade Equity Analaysis v3.35A
Attachment: Office of Trade Equity National Poll removed
Attachment: Office of Trade Equity Budget removed
Attachment: Minister of Trade emergency meeting notes removed
Attachment: Foreign Nation FAQ retained
-------------
Subject: Trade Equity
Definition: A manner of taxing outside business entities for goods and services produced outside of the nation of StrendReich.
Current Methodology: 7 + 2 steps (2 steps appended: Squire of Trade)
Step 0) Nation or corporation applies to sell goods or services in StrendReich (appended: Squire of Trade)
Step 1) A Trade Assessor is assigned to client from StrendReich
Step 2) Nation or corporation supplies base costs to produce item, monthy sale figures and average (mean) pay rate for employees on a monthly basis. The cost per item is referred to as the Foreign Sale Value.
Step 2.5) Sales figures and employee pay is verified by Trade Assessor. Corporations or nations who misrepresent figures are denied to trade with StrendReich until correct figures are supplied. (appended: Squire of Trade)
Step 3) Information is entered into a national database by Trade Assessor. Some corporations/nations supply the information in electronic format
Step 4) Employee monthly pay rate is compared against Strendreich average monthly pay rate. Difference in pay rate is multiplied by # of items sold in a month (from sales figures in #2). This is refered to as the Adjustor Rate
Step 5) The Adjustor Rate from Step 4 is added to the monthly sales figure from Step #2. This is referred to as the Equitable Value of the item in question.
Step 6) The Equitable Value from Step 5 is divided by the number of items sold (from sales figures is Step #2). The result is referred to as the Equitable Sales Value.
Step 7) A tax is applied to the item equal to the difference of the Foreign Sale Value (from Step #2) and the Equitable Sales Value. This tax is paid by the foreign corporation/nation.
Problems:
1) The current system is cumbersome and requires manual entry of most items. Those nations/corporations that submit electronic information to StrendReich often use custom formats that must be converted before they are entered into the national database.
2) A Trade Assessor is required to handle each seperate nation or corporation (due to volume of transferring/verifying information) and often requires a liason on the Corporation or Nation side as well.
3) Funding is dwindling while at the same time costs to keep the system functioning are rising. Currently the system costs $1,500,000 Measures per month to work at full efficiency. Current funding is at $125,000 Measures per month. (see: Office of Trade Budget - n.b.:removed)
Solution: Offer participating corporations or nations and interested parties to provide detailed plans for simplifying and streamlining system. Offer a bounty equal to one year's worth of savings to the best solution that can be implemented.
StrendReich will prepare a cost-analysis study of each methodology proposed and grant the bounty to the most cost-effective solution broached after one month of review.
Considerations: The following factors should be kept in mind when proposing a new system:
1) Not all participating Corporations/Nations currently have access to up-to-date computer technology. Several minor corporations/business enties do not have access to compatable computers at all.
2) The current system taxes items capable of being produced inside of StrendReich as well as items that currently cannot be created inside of StrendReich. The new system must strive to reward nations/corporations who produce items StrendReich cannot produce itself.
3) The new system must promote equitable trade between StrendReich and the foreign nation/corporation. StrendReich will not consider any plan that promotes companies to profit by basing their workforce on foreign soil. We are not interested in promoting "cheap labor" that demeans the work force.