Xiao Letian is right. In the early days of colonialism, Western business models were all the dumping models that Mr. Krupp was thinking of at the moment.
Because at that time, European countries regarded industrial strength as their country's core competitiveness, which meant that industrial production capacity must be tightly bound within their own territory.
Both the businessmen themselves and the government are vigorously promoting the construction of large-scale factories in the country. A large number of industrial products are produced in the country and then transported to the world through ocean trade. Whether they are colonies or semi-colonies, these poor and backward countries have become dumping grounds for Western industrial products.
Then European merchants used the profits earned from these industrial products to purchase countless resources in the colonies, and then transported them back to the mainland by sea to continue producing new industrial products for sale.
It's an ongoing cycle. Under this model, European countries have more and more domestic factories and their gross national product is getting higher and higher. In contrast, the colonies are getting poorer.
The wealth of the colonies was plundered to Europe again and again, like sheep being sheared. The dumping of cheap industrial products in Europe will make a lot of wealth, and then local resources will be plundered at low prices, which will deepen the plundering.
Under this model, Europe would become richer and richer, while the colonies would become poorer and poorer, until one day this model could no longer hold on and snapped like a tight spring.
In the final analysis, this is a predatory business model, and they never consider the sustainable development issues of other colonial countries.
The shearing of sheep back and forth will only reduce the colony to complete poverty! By that time, the colonies will no longer be able to purchase European industrial products, and the colonies' own resources will be completely drained.
At that time, a very scary phenomenon will occur. Europeans will suddenly find that the industrial products they produce, those that were originally hot-selling, suddenly become unsaleable. On the surface, this means excess production capacity.
Excess production capacity will naturally create an economic crisis for capitalism, which is a nightmare that is difficult to resolve.
Excess production capacity is ultimately caused by unsalable goods.
Why can't it be sold? Because Europe itself cannot digest such a large amount of industrial products, and other colonies around the world have been plundered by Europeans and no longer have the ability to buy your industrial products.
If there is no surplus, what are you waiting for? This economic model will collapse sooner or later, and it will collapse violently.
Moreover, the economic crisis will directly induce the urge for war in humans! Greedy humans will not think of changing themselves to solve the problem!
document.write(' ');
tanx_s = document.createElement("script");
tanx_s.type = "text/javascript";
tanx_s.charset = "gbk";
tanx_s.id = "tanx-s-mm_20220310_6306640_40862697";
tanx_s.async = true;
tanx_s.src = "http://f9183.ziyouge.com/ex?i=mm_20220310_6306640_40862697";
tanx_h = document.getElementsByTagName("head")[0];
if(tanx_h)tanx_h.insertBefore(tanx_s,tanx_h.firstChild);
All they can think of is to go out and rob, rob like bandits, and put their own crisis above other weak countries!
But when all the weak countries in the world have been bullied by them, when all the weak countries have no more wool to shear, the last thing they can do is to kill each other like vicious dogs!
The European powers began to fight each other, hoping to pass the economic crisis onto other European countries. So what will be the result? Of course it was World War.
Xiao Letian coldly painted a picture of hell to everyone. He directly pointed out a Achilles heel in the current European economic operation, that is, traditional colonialism has come to an end. If reform is not actively carried out, then Europe will What we end up facing must be self-destruction like vicious dogs fighting for food.
"Have you figured it out now? Mr. Krupp, do you really think there will be a future if we survive according to the past thinking? There is no more!"
"At this moment, you have only one way, and that is to bravely welcome the changes of the times and actively seek change! Take the initiative to change your business thinking."
"Don't always think about building factories in your home country. Be bolder and build your factories in target consumer markets around the world."
Production, research and development, and sales in new markets. In this way, not only can you earn huge profits, but your local investment also boosts the economic development of the target market country.
Only when the economy of the target market develops will they mobilize stronger consumption power, thus promoting the sales of our products again.
Once a company like Krupp Arsenal enters Asia, many of its upstream and downstream industries will benefit. First of all, in order to coordinate the material dispatch of the arsenal, the railway system will be gradually built, and then mining, steel plants From smelting to final machining, a series of industries will flourish.
Countless workers have earned wages, improving their living standards, and local governments have also received fiscal revenue. This money will flow back and forth in society, eventually forming new purchasing power and feeding it back to your business.
This is the endless way to make money, don’t you still understand?
Take the initiative to build a financial ecological chain of your own and create a business chain of your own.
What you have to do is to control the round-trip cycle of the entire business system from top to bottom, instead of continuing to be those producers and then selling predatoryly.
This is the mainstream of the future. Whoever can seize this mainstream will control the future world. At that time, what you have built is not just a business, but a super empire.
How about it? Are you feeling a little excited? But let me tell you, the truth is really not as simple as what I just said.
Another main reason why you must choose to build a factory in the target market is safety!
This is my second point, please keep it in mind!
Who controls the golden maritime routes around the world at this moment? Control was in British hands, under the control of the Royal Navy.
My dear sir, what if your Krupp goods are intercepted by the British on the sea route? This is not without precedent. Don’t forget that when Benjamin was in power, he once ordered a military embargo against the Chinese people.
At that time we had sixteen ships of Prussian arms, all of which were seized by the British and French navies!
Producing rifled barrels for Mauser rifles, as well as high-strength firing pins... these are industrial products that we Chinese cannot produce for the time being.
The sales of these strategic industrial products have always been under the control of the British.
Is it a good feeling to have someone's breath? I think you should be very clear in your mind. Should the security of business transactions be in the hands of others? Have you ever thought about this?