The problem with mercantilism is the need to buy from outside the customs border.

The model of mercantilistic financial philosophy is that the entire consumption and product of the goods happens inside the country's borders.  In modern terminology, the word "country" should replace by using the term, "economic area". So the money will circle inside the economic area. The limit of the economic area is the border of the national state or it can be the union of the countries. 

The reason why the money flows outside the borders of the economic areas. is some goods are brought from there. There is always a need for raw materials that cannot produce in the economic area.  When some goods are wanted to bring to economic area the bringer must pay the price. And the money travels to foreign areas. 

Those goods might be raw materials, machines, or services. If in the foreign country is made the new machine that brings benefit for the state. The mercantilistic nation wants to buy it. That machine can be some new ship engine or jet fighter. That means the economic office can buy that machine from that country outside the economic area. 

But the spare parts and other things require contracts. So maybe the economic office will bring the civil engineer from outside the economic border for making that machine. And in both cases, the money will travel outside the economic area. Of course, the salary for the engineer can be delayed. That means the country can deny paying for the service, but the stupid question is how many engineers will come to offer services for that kind of nation? 

But mercantilism is still the thing that dominates things like the economic way of thinking. When the nations are pushing the customs border away and make the internal marketing areas they are offering the gigger area for mercantilism. The problem with the economy that rests on internal marketing is that there is always a loss of money. There are always goods that require outcoming raw materials. And when that raw material is brought outside the customs border. 

The need is the large-scale investments in the economic area. 

That means the level of currency is decreasing. In economics, the money or currency is the energy, that rotates the machine called economics. Even if the money just circles inside some area, there is always the loss of currency. The outcoming currency and investments are bringing the money to the cash of the economic area. The large-scale investments are bringing money for the companies that that are paying taxes for the government. 

But the problem is that if the economic area felt hostile the company will move its headquarters to another country or economic area. That means the government loses the major part of the tax incoming that is coming from that company. And that makes economic planning difficult. If the personal consumption or people turns too low, that affects sales of the everyday goods. 

That harms the areas that are employing many people. That thing decreases votes in the next elections. If the companies are paying high taxes, that means they are transferring their address outside the economic border. And that leaves the country without those tax incomings. The individual people cannot support the state economy enough. And the need is the great, large scale investments that can bring more money to the machine called state 

()https://thedarkchronicle.blogspot.com/

The paradox of poor people is that in the wealthiest states lives poorest people

The paradox of poor people is that in the wealthiest states lives poorest people

1. The natural resource-based economics would not need a highly educated labor force

When people are talking about the wealthy states and people, they are facing a paradox, that in the richest countries lives poorest people. This is a very interesting point of view when we are looking at the segmentation of material and capital in the world. The difference between the poorest and richest people in some nations is very huge, and this advantage is seen also in western countries.

This is the thing, what is somehow interesting because when we are looking at the gross national product, nations are very wealthy. But that money would not benefit individuals, and of course, there is a possibility to get social benefits, but those benefits are coming only if the person is filling the papers, and knows how to seek them. And this is a really interesting thing.

If the person is living in the country, which is really well-known about its natural resources is a higher probability to born poor than the wealthy person, and this is one of the greatest paradoxes on Earth. The thing is that in those nations, who have the greatest natural resources, have the poorest education in the world is something really prominent. The reason for that is that drilling the oil is no need to educated people and because the wealth of those nations is coming from natural resources, there is no need for higher education.

When entire production is made with people, who don't have education, the worker is easy to replace. That thing is a suitable model in some oil fields, but if the nation would not have great natural resources, it must find another source for its incomes. The high-tech industry needs trained people, and that is the reason, why the western world has the superior against those nations, what the main production consists only things like oil and minerals.

If the product of the high-tech industry is immaterial things like computer programs and other things like marketing pages, that means that there is a need for the people, who are working in multiple areas. That means that if we would want to market those programs and other things to a foreign country, we have two possibilities. Of course, we can teach other people to talk our own language or make the homepages by using those people own language. If somebody wants to buy things like screwdrivers from the Internet, that person needs to read, what kind of tools is wanted.

2. Everybody makes mistakes

In this case, there are differences in tools, and if the ordered tools are metered in inches, they are not suitable for tools, what are made for metric systems. If the buyer would not know the difference of inches and centimeters, that would cause very bad problems in the working place. The thing is that if the person makes work, where the most important thing is to be sharp and make complicated codes or write texts, where are complicated things like customs orders or legal things, there must be realized, that in this kind of things is possible to make mistakes.

And people must live with that thing. Nobody is perfect and in some cases, even the best are making mistakes. Of course, is embarrassing, if the person would have to pay more about the merchandise because the customer forgets to mention something, or put some number in the form, and that might cause extra prices.

Some of those extra prices are caused because in the shipment forms are forgotten to mention, that the information about the order is taken from some certain homepages, and if the stuff is ordered by using that information the customer would get it at a lower price.  Those things cause sometimes reclamation because somebody had to pay more, but the maker of the text must live with that thing.