Policies

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Words: 655

Pages: 3

Category: Business and Industry

Date Submitted: 11/23/2010 10:34 AM

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Dear Prime Minister of HillCountry,

After performing a strategic assessment we found that although you do not have an advantage in any economic activities, you do have a comparative advantage in making hand crafted blankets. This is where the resources of you country should be focused. The reason being, you can produce hand crafted blankets and trade them for goods that require much more resources. For example, a blanket requires 30 hours to create, and because it takes the United States 10 hours to make, you can fairly trade one blanket for 10 bushels of corn. The 10 bushels of corn would cost 1000 hours of your countries resources. You can also fairly trade one blanket for 10 kilograms of honey which would cost your country 100 hours of your resources. Like wise you can trade one blanket for almost two kilograms of wool which would cost your country approximately 40 hours of your resources. Although this is the case we do not recommend shifting all your resources to making hand made blankets for the reasons of avoiding full dependency on trading with the United States.

First off we recommend mandating companies that want to start a business in your country to employ at least 50 percent of their workers from your country to create job opportunities to your local people. This will create work and bring revenue to HillCountry. Additionally US companies should be required to train the employees two weeks out of the year to create stability in the different trades. With locals being train, they will be better suited for the future and reduce the dependency on the U.S. Also transferring of technology will be required so that all the new technology that is required to keep up with the efficiency will still remain in the country even if foreign investors decide to pull out. The countries land should never be sold to foreign investor, but minimum leases requires should be implemented, so that investors would look into long term investing rather than short...