Skip to main content

Posts

Showing posts with the label supply

Just my thoughts #0673

An asset is the foundation of all economic activity. If you have assets, you can run a business and settle your debts. The ways to create assets are ‘how one works,’ ‘how to receive gifts from others,’ and ‘how to purchase assets made by others.’ There is a way to steal, but it is a crime. If you don’t initially own an asset, the simplest and almost the only way to create one is to produce something with your own labor. Whether the product is a service or a good, it must be produced unconditionally. Trading products creates added value. Thinking about trading later and making products first is the fastest and most basic way to escape poverty. Therefore, produce even the smallest things every day. Knowledge, records, art—whatever! - Joseph’s “just my thoughts”

Just my thoughts #0616

In markets that trade natural products, such as agricultural, fishery, energy, and commodities markets , oversupply or at least excess supply causes problems. When supply is high, prices plummet, causing significant damage to producers; conversely, when supply is low, prices rise, and consumer sentiment diminishes. As a result, both suppliers and consumers suffer. The challenge is that it is difficult to intentionally set the level of production. Because of this, a futures market develops in situations where we have to accept what nature provides. Futures trading is a method in which a producer and a distributor agree in advance to trade the price of an item to be produced in the future, without knowing the exact quantity yet. In other words, in futures trading, the focus is on price rather than quantity. Since it is challenging to stock items that require freshness, futures trading offers advantages by allowing transactions to be made in advance. However, if supply fluctuates too m...

Just my thoughts #0224

There are markets where demand generates supply, while there are markets where supply must generate demand. Las Vegas, a city in the middle of the desert, is a business structure that creates demand from supply. Supplying gambling rooms simultaneously generates the operating income of the gambling room and profits from hotels, transportation, restaurants, and shopping. In a poor business environment, you need to review the essence of your business. If you try without structural change, you will likely tire, and it isn’t easy to expect improvement. - Joseph’s “just my thoughts”