In the news, you often see that the US accuses China of being a currency manipulator by artificially keeping their currency low. If their currency were allowed to rise, goods produced in China would get more expensive in the US and we would buy less of them. Higher prices would mean that Americans would have […]
How to Leverage China’s Currency Manipulation to Your Advantage Read More »
A trade deficient or a trade surplus unto themselves are not necessarily bad things. A trade deficit simply means that you buy more from your trading partner than he buys from you. The opposite is true with a trade surplus. You have a trade deficit with Wal-Mart, but a trade surplus with your employer. If
Understanding the Trade Deficit for American Business Read More »
Labor is a major component cost of any product or service. The lower the labor costs, either the wider the margin or the cheaper the price of the product or service. Cheap labor can be had by either opening our borders to immigrants who are willing to work for less, or by outsourcing. I contend
Immigration vs. Offshoring? Read More »
Let’s explore an extreme scenario. If you could get all the labor you need to run your business for free how much of it should you buy? I would say “use all the free labor you could get” since with no labor costs your company and more importantly its owners can earn a higher return
Is Offshoring Work to India and China Really a Bad Thing? Read More »
3 types of Investment risk. Greater risk = great rewards. Range = Inventory, least risk/reward, thru production equipment, to innovation most risk/reward.
Understanding the Investment Risk Continuum Read More »
As a hunter, I appreciate a buck with a large set of antlers. However, it is not the absolute size of his rack that makes him able to defend his does from his adversaries, but his relative size to the other bucks. As the saying goes, “You do not need to run faster than the
Absolute vs. Relative Values Read More »
Many people falsely believe that people are motivated by money. The truth is that people are motivated by their relative social or professional standing, aka “status”. To prove this point, consider the great lengths people are willing to go to become a famous movie star or a professional athlete. Money is simply a means to
People are Not Motivated by Money Read More »
The owner, or the person that invests in a new business, gets paid out of the business’ profits. An employee gets a guaranteed wage paid by the owner/investor. Therefore, the employee cares about getting a paycheck, while the owner cares about the ongoing success of the business and profits. We own a few income properties
Owner vs. Employee Mentality Read More »
Small businesses generally discount their negotiation position when dealing with a larger company. Basic economics would dictate that if you provide more value in an exchange you should be compensated. Consider the hotdog vendor in front of Home Depot. I postulate that Home Depot derives more value in that exchange than does the hotdog vendor.
Don’t Discount Your Position Read More »
Three-quarters of all firms in the United States are categorized as “non-employers”. Non-employers are business that provides work for only a single or part-time owner. While small businesses which employ many people are usually started in response to marketplace opportunities, non-employer business is often started as occupational decisions. They can be a way to deal
How to Leverage a Turning Tide Read More »
