Subverted This is the Emperor Chat Group

Infrastructure Maniac (Eternal Ruthless Lord):

"It seems that we must let you know what is called economic unity,"

"What is the true wisdom of the ancient Yanhuang people?"

"Don't think that after reading the book for two days, you can crush the ancients."

"I just want to say that you take yourself too seriously."

"Chen Tong, teach them how to behave."

"Let them know what is called the way of economy and what is called the knowledge of anti-three views."

………………

Of course, Chen Tong is not polite. What he dislikes most is using Confucian theories to explain economics, which is playing the piano indiscriminately.

The conclusions drawn will only make people laugh and cry.

Chen Tong:

"Then let's take a look at how tributary trade is explained in economics.

Economics can never be separated from two basic dimensions, supply and demand.

In fact, the explanation of the tribute trade is very simple, that is, it changed the balance of supply and demand.

What was the form of maritime trade before the tribute trade appeared?

That is, Western countries use sea ships to pull in goods, and then put them on the Yanhuang port, and sell them to various companies in Yanhuang.

You have to be clear that the commodities imported from the West are extremely scarce products.

After all, these things are not available in the East, and for us they are luxury goods among luxury goods.

Scarce resources of scarce resources.

Like our porcelain tea and silk, that is a product that is desperately lacking in the West.

Here comes the problem. According to the common sense of economics, rare things are more expensive.

The supply is very small, because there is only so much that can be pulled from the West.

But the demand is very strong, the entire Yanhuang nobles need it, and there are many competing companies,

At that time, private people were allowed to conduct maritime trade, so these private companies,

The Li family, the Zhang family, the Wang family, the Zhao family, and the Qin family, there are hundreds or even hundreds of businesses, large and small.

In order to obtain such scarce products, what phenomenon will they cause?

That is price gouging.

All want to get sales agency rights.

From an economic point of view, it is called demand greater than supply, resulting in a situation where supply exceeds demand.

Therefore, the prices of these things will be fried.

It is equivalent to the tulip phenomenon in the Netherlands.

Li Caoyuan, can you understand this? "

………………

At this moment, even Chongzhen can understand what Chen Tong said, so why don't you understand it?

Self-hanging southeast branch:

"This is the same as our Yanhuang porcelain tea and silk going overseas,"

"There are so many goods in one shipment, but there are more sellers. That's what the rich and powerful of all small western countries need,"

"And they sent out more companies,"

"In this case, it must have been as these people bid and competed to drive the price of the commodity to sky-high prices."

"This is also the reason why the Maritime Silk Road can reap huge profits."

"It's just a word, the supply exceeds the demand!"

"If Li Grassland doesn't even understand this, he might as well commit suicide."

………………

Li Zicheng snorted.

The people do not pay:

"Who are you looking down on?"

"Isn't it that rare things are more expensive?"

"Isn't it just that the supply exceeds the demand?"

"And then? What about the sea ban and tribute trade?"

........................

Chen Tong chuckled.

Chen Tong:

"The next step is the wisdom of the ancients of Yanhuang, which is the real essence.

Then take a look at how these really powerful people in the Song Dynasty operated?

It stands to reason that in such a situation, would the prices of overseas luxury goods have to skyrocket?

So how can people in the Song Dynasty benefit from it?

Don't we want the West to harvest the Song Dynasty and cut our leeks?

So these smart people set up the tribute trade and sea ban system at this time.

Using their power, they imposed a sea ban on the goods they wanted to purchase.

It is forbidden for private firms to participate in the competition of buying and selling,

In addition, tributary trade was set up, so that these foreign merchants had to purchase from the Song Dynasty officials first.

So the question is, what will happen to this situation?

That is, the buyer is gone!

Originally, there were hundreds of companies participating in the competition, and they could even drive up prices.

But because of the sea ban system and the tribute trade, all these buyers were driven out of the market in an instant.

There is only one buyer left in the entire Yanhuang market, and that is the official of the Song Dynasty.

Then let me ask you, who owns the current pricing power?

Is it still in the hands of those foreign businessmen with rare goods?

No, no, at this time, it is the Song Dynasty people who have the final say.

In fact, when the Song Dynasty invented the sea ban system and tribute trade, it used the principles of economics.

Artificially driving out all the demand side, thus firmly controlling the pricing power of the market in their own hands.

In this case, the Song Dynasty officials said that how much you sell this product, how much you have to sell.

If you are higher than this price, I will not buy it!

The Song Dynasty officials did not buy it, and private purchases were not allowed.

So what do you say about these foreign businessmen?

Can they still take the goods and risk the shipwreck to go back again?

That's not a loss for pants!

Therefore, they can only be obedient.

Therefore, the sea ban system and tribute trade play the most important role in the economy, that is to lower prices,

Gain the most important pricing power in the trade.

This is actually the earliest trade war in world history! "

...............

Holy shit!Holy shit!

Zhu Di felt his heart stop beating.

He was really amazed by the wisdom of the Song people.

Execute Your Ten Clans (Hero Lord of the Prosperous Age):

"The people in the Song Dynasty are so soft-boned, but when it comes to making money, each one is better than the other!"

"The economic system can still play like this!"

"The original pricing power is in the hands of Westerners, because they have rare commodities."

"However, after the Song Dynasty implemented the sea ban system and tribute trade, it directly expelled Mai Fang from the market,"

"Let the original state of insufficient supply directly become an oversupply."

"There is only one buyer left in the entire Yanhuang market, and those sellers are at an absolute disadvantage."

"This is called turning your hands into clouds, turning your hands into rain!"

"This is the real invisible war!"

………………

The human emperor Xin slapped the stone table hard, making Daji arrogant.

Anti-God Pioneer (Ancient Emperor):

"Wonderful and wonderful!"

"This is the real sea ban system and tribute trade."

"It's all nonsense if it's light and thick."