Wednesday, April 24, 2013

宏观经济 - macroeconomic

Recently i am attended a course - macroeconomic . This course guide by professor Nilss Olekalns of University of Melbourne. I have to take back my old book and study some basic math with basic theory to understand the course.

Macroeconomic represented by calculation of one country production, income and expenditure to evaluated their GDP and then set some policy to match the country objective. Is it correct? Some interest policy, some sample and hypothesis, some government policy, some currency policy. Isn't it can rectify a country pull out from recession or still congestion onto it.

I am not a good student and maybe I have some misunderstand those theory. In fact, all doubt will continuous because I really disappointed a country can print unlimited note and let it flow in to market. Is it can stop it or stop it may happen some bad news????

Real GDP or Norminal GDP also make some confuse by population. That's an equipment for politician to divert the nation attention on bad news. So, macro become micro. Micro can be macro. Really confuse.......................

Wednesday, April 10, 2013

Risk of Business

When you need to start a business, are you considers the risk of business.  That is not simple as you think. Especially those people who need to start private limited operate the business. In my opinion, the boss should consider 3 major risk: -
a)      Capital Risk
b)      Government Policy Risk
c)       Management Risk
The abovementioned risk included a lot of uncertain issue, there also comprising many small risks. Like
a)      Capital risk
As a investor start a business require capital. So, the money maybe borrows from friends, family or relative. Some others raise funds from financial institution. The pressure derive from refund due date and then always cause the business face the cash flow problems.  The activities of business always subject to how fast you can close the deal and so receive the yield back into your company. If one of the deal close without any cash return, it could not said you has been successful on such deal. Because anytime it can be turn as bad debts or loss the gross margin because of opportunity cost ( Like bank interest or another new business deal). So monitoring the cash flow always is priority concern in the business activities.  Other than that also some business require a heavy investment on capital expenditure, like Power supply business, development or Infrastructure or development of new IT or research the new medicine and so on…..) Such business in the few stages do not give you any return or revenue, so the pressure on such sometime make a good idea ceases in between.
b)      Government Policy Risk
Every country owned difference of policy for business activities. So the company may face various rules and regulations bind it. That also brings a corporation facing heavy local tax, law or restricted activities or levy tax or structure of shareholding and then the corporation also need to fulfill difference type of tax and labour law to expand and uncertain period of audit from those local authority.
The above issues can bring a corporation loss everything and then shareholder in the trouble. Without such knowledge on authority department make those directors and shareholder may hold high risk to against the law.
c)       Management risk
In the corporation, key personals with difference views for company vision require a big capital to satisfy all difference type of projects. If one the projects fail can make the management loss focus on main duty.
The workers loss direction on company main project also is a management risk.  If the circular system  too complicated or complex or documentation misplace or loss also can cause problems.

As a boss of one company or an investors of one company. That is difficult task to ordinary people. You must listen, action, performing as well as with good attitude. Not only such, you also must have change and flexible.  If you have educate with professional course, you are hardly to understand one business man. That’s true.!!!!!!      

Thursday, April 4, 2013


A country situated at Euro, happen an issue to argue. The issue like that: -
In a small town have 2 villages, there are 2 cases under debate. They have own difference committee, and then the committee elect by people. They named it Republic of People Committee (RPC). RPC of A village concluded the plaintiff is a winner and RPC of B village justified the defender is a winner of the case.
In A village, there is a middle man offer a big contract to defender. Without the introducing of plaintiff, defender 100% could not acquire the contract. Then now, the contract ended up by local authority decision. RPC of A said the commission must paid accordingly although the contract is end.
In B village, there also have a middle man doing a same job but RPC of B village said defender should not pay because the contract offer comprising of illegal action/business activities.
The argument is: -
a) Why we can ignore the contract?
b) Why we can encourage the illegal activities as a content of contract?
c) We should respect the contract or the ethic?
d) How come middle man can’t earn such money if they are not involving the illegal business activies?
My lecturer ask me the question, I do not know how to answer who is right! Anyone can help me?