Chapter 172 FOB Price and CIF Price
Although the planned economy has many disadvantages, such as the disconnection between production and demand, the inability to reasonably adjust the interest relationships between various internal economic entities, etc., its many advantages cannot be ignored. It can effectively avoid the blindness and uncertainty of market economic development and the uncontrolled consumption of natural resources, and can scientifically allocate and fully utilize limited human resources to maximize the benefits they generate.
Of course, there is another effect that the Executive Committee values that is that the planned economy can effectively control the gap between the rich and the poor in society and maintain a stable social situation. This is very important for the early expansion of the cross-country group that needs to absorb a large number of poor people. For the vast majority of people, regardless of their cultural level, there is a psychological existence that worries not about scarcity but inequality. If everyone's living conditions are similar, the hardships will be hardships and they will be over with patience. But if There is a local rich man living in a group of bitter people, which is bound to arouse the hostility of the people. The Executive Committee publicized all land and means of production under its rule and implemented a planned economic system internally, precisely to eliminate the excessive gap between rich and poor among the people.
Of course, the planned economy cannot prevent the emergence of the privileged class. In fact, these more than 400 time-travelers are now the privilege holders in this social environment. In order to avoid the collapse of the people and the government, the key departments and key units of the time-traveling group must be in the hands of the time-travelers and their direct descendants within two or three generations, and this will inevitably create a privileged class. However, for the overall environment in which the Time Travel Group will operate in the future, a small group of people becoming the privileged class will not cause much trouble - compared with the troubles that Ming Dynasty will face in the next ten years, this is simply a big problem. Just something.
Li Nai didn't understand what a planned economy was, let alone what a social welfare security system was, but he could tell from Jiang San's answer how much the local people recognized the way the Haihan people governed. After listening to Jiang San's statement, Li Nai even felt a little bit like God was unfair.
Regarding the governance measures that Jiang San later added, Li Nai was certain that not only in Yazhou, but also in the entire Ming Dynasty, there would be no other place that could do this like Victory Port. To bear all the expenses for an employee's food, clothing, housing, transportation, life, old age, illness and death, this expenditure is not a small amount. In most industries that Li Nai knows, this level of welfare protection will make the boss jump directly. Of course, not to mention the government, which does not collect money but still gives money to the people, do they really regard their parents and officials as the biological parents of the people?
The local treatment of ordinary people was so good, Li Nai didn't even need to ask, he could guess that there must be no taxes and fees for ordinary people here. Such a costly policy can only be implemented by Haihan people who are good at running trade and have a variety of high-profit export products. Although Li Nai couldn't figure out how the Haihan people operated economically to ensure the smooth operation of this social system, it was obvious that the methods of the Haihan people were many times better than the local government of the Ming Dynasty. Judging from the local people's sentiments, In just two or three years at most, the people here will definitely think of themselves as Haihan people rather than Ming people in order to enjoy such a high-welfare life.
However, no matter how good the Haihan people are at winning over people's hearts, Li Nai doesn't think they will do anything outrageous here. At best, they will build Victory Port into a large smuggling port in the South China Sea. As for Haihan's artificial guns and cannons and even organizing militia groups to replace local government functions, Li Nai also thinks there is no big problem. Some large merchants in the coastal areas of Fujian, Jiangsu and Zhejiang have adopted a similar approach and built their own ports for maritime trade. The dock is just not as big as Victory Port.
After listening to Jiang San's words, Anxi was already smiling, and secretly thought that the usual mass education work was really effective. He didn't expect that a peasant like Jiang San, who was illiterate, could actually say such a truth. Commendation, this must be commended afterwards. It just so happens that the members' mutual aid association still lacks a person in charge, and Jiang San seems to be very suitable for this position.
Under Anxi's persuasion, everyone stayed at the Salt Farm Commune for lunch at noon. In addition to the various seafood caught ashore this morning, there are also several saltworks-style dishes on the table - salt-fried meat, salted fish and various pickles. When Tao Donglai asked Li Nai if he wanted some wine, Li Nai's expression immediately changed and he waved his hand repeatedly saying you're welcome. The uncomfortable feeling of being drunk by several Haihan leaders the night before had not yet passed, so how could he dare to challenge his limits again.
After the five flavors were over, Li Nai took the initiative to bring up the sale of private salt: "The quality and price of the refined salt you sent last time were very good. I am willing to sell the refined salt produced by you in the Fuguang area. I don't know what you think. ?”
"Still the 10,000 pounds per month that your bank said before?" Schneider asked meaningfully. Almost everything that needs to be seen has been seen, and everything that needs to be discussed has been discussed. If Li Nai still can't let go, then the executive committee may have to consider finding another agent in the mainland to do this private work. Salt was bought and sold.
Sure enough, Li Nai shook his head and said: "I underestimated your refined salt production before, so I only proposed a monthly trading volume of 10,000 kilograms. But after visiting the salt farm today, I think this trading volume should be at least five kilograms per month." 10,000 pounds, and can be adjusted later according to the market situation.”
Compared with the arms export agreement reached the day before, the total amount of the monthly salt order of 50,000 jins is not much. Calculated based on the previous wholesale price of 50 yuan per 1,000 jins, that is, two hundred 27 pieces were sold. Type matchlock level. But what the executive committee values is not the profit of a single transaction, but the long-term benefits of the salt business. Guangzhou Prefecture and its surrounding areas alone have a population of nearly one million. Such a population consumes far more than 50,000 kilograms of salt per month, not to mention that "Furuifeng" has the ability to traffic illegal salt to further distances. Sales in mainland Guangdong and Fujian, the Executive Committee believes that the markets that can be developed in the future are very worth looking forward to. In a labor-intensive industry like salt production, as long as there is a labor force, the executive committee can continue to expand production capacity without being troubled by the supply of raw materials or insufficient technical personnel. And due to the superior production efficiency, Chuanhua Group's salt can Costs are controlled at extremely low levels, and the mainland is simply unable to resist planned large-scale dumping.
The consequences of this will definitely lead to the bankruptcy of a large number of salt farms and salt households in coastal areas, and the official salt tax in Fuzhou and Guangzhou will also be sharply reduced. But this is exactly what the executive committee wants to achieve - to directly turn this road into its own, leaving others with no way to go. When such a situation occurs, the Executive Committee will try to recruit bankrupt salt households from the local area to move to the Sanya area to serve as a labor force for the development of Hainan Island.
There may be various overt and covert struggles due to huge interests, such as between salt merchants, between salt merchants and the salt class promotion department, between salt merchants and salt farms, etc., but the Executive Committee believes that with the help of Chuanchuan Group, With backing support, agents like "Furuifeng" will never suffer big losses in the battle - if you want guns and cannons, there will not be a second private group with such powerful equipment in the entire southeastern coastal area. Salt traders exist.
However, in order to successfully conclude this deal, there is still a small problem that must be resolved first. Schneider said: "Fifty thousand kilograms per month is no problem, but the delivery location must be determined. I think Mr. Li also knows that our current maritime transportation capacity is very tight. I am afraid that we cannot allocate ships to Guangzhou to transport salt or We are transporting other goods, so the commodity prices we quoted before were all FOB prices.”
Li Nai puzzled: "The delivery location is easy to negotiate, but what is the FOB price?"
Only then did Schneider realize that Li Nai probably couldn't understand this later international trade term, and quickly explained: "The FOB price is the price of the seller's goods after they are shipped and before they leave the port, which means that the delivery location is the port of shipment. , when we complete the inventory of the goods and money during shipment, the transaction is concluded. Another way is the CIF price. The delivery location is the destination port specified by the buyer. Because of the transportation cost, the CIF price will be higher than the CIF price. The shore price is just a little higher.”
Li Nai nodded and said: "Mr. Shi's explanation, this FOB to CIF statement is easy to understand. So, may I ask Mr. Shi, is the trade in Victory Port the same as before, without tax?"
Schneider nodded repeatedly, thinking that this rich second generation was really not the kind of playboy who was ignorant and ignorant, and did not ignore details such as tariffs just because the transaction went smoothly. From the beginning of planning, the Executive Committee has positioned Victory Port as a duty-free free port, so there is no tariff setting. The benefits of duty-free ports in increasing import and export trade volumes have been proven historically and need not be repeated here.
As for the situation that makes local industries vulnerable to the impact of imported goods, the Executive Committee is not worried. When it comes to production efficiency and production costs, no one in this era can do better than Chuan Chuan Group. As long as it is local manufacturing and production in Sanya industry, its product prices will certainly be lower than those of its contemporary competitors. What's more, most of the imported goods of Chuan Chuan Group are mainly raw materials, while the export goods are mainly industrial products. This kind of commodity import and export structure will make more profits if it is traded through a duty-free port. .
However, compared with the simple and clear tax-free policy of Victory Port, the relevant policies and tax system of the Ming Dynasty are much more complicated. It is not even a problem that can be solved by simply adding freight. That is why Schneider raised the issue of determining the delivery location first. .
(End of chapter)