There are many factories worldwide. They produce more than 200 products and services. Some products are in oversupply and others may be in short supply. Over supply will result in lower prices, as products remain unsold. Shortage of products will result in higher prices. Severe shortages may cause more damage down the line as many corporations need products in their own production process and cannot produce if supplies are not available.
An automatic process drives corporations in the world. If some of their products remain unsold on the market, these corporations will adjust their production levels and start producing less. Their output will be reduced repeatedly and some of their staff will be fired. These reductions will result in reduced offerings on the world market and reduced use of materials. The changes in production levels will gradually bring stabilization of supply and demand.
On the other hand, shortages in the market will cause corporations to produce at 100% of their capacity. If even this is not sufficient, the automatic corporation building process will start new corporation in many countries that do not have a president. These corporations will make the products that are in short supply and again support a stable supply and demand in the world.
Presidents and CEO players will also react to over supply and demand and adjust their production. This results in a dynamic market and many opportunities for good business.
Very severe shortages may however cause wide range damage on the market. If the shortage in a widely used product becomes larger than a complete month supply and this shortage continues for a long period, thousands of corporations may stop their production and many may close.
As a president or CEO, you should watch the market numbers for extreme shortages and in some cases manually purchase raw materials at any price, to prevent corporations from failure.
There are about 80.000 to 150.000 corporations in each world and their production capacity is huge. There are many corporations making each product. Some products are produced by thousands of corporations. There are some exceptions with products that are hardly used and there is a limited capacity to produce weapons.
Shortage in production capacity or over supply may change quickly as corporations adjust their production levels. Severe shortages however will be hard to correct and may persist for a long time. Shifting consumption will also create new shortages or surpluses.
When choosing a corporation to build, it is important to find products for which there is a long-term shortage on the market. Such corporations have a good chance of selling all their products and they may benefit from high product prices that may result from the shortage.
The factory utilization page in the world trade section shows the number of factories in the world that producing each product, the production capacity (at 100% production level), the actual production last month and the percentage of utilization of factories per product. The table also shows the orders last month and the surplus or shortage per product.
Low utilization levels for some products have several possible reasons. The product may be in over supply, which causes many of the corporations to reduce production. Raw materials for the production of a specific product may be in short supply. If this happens, factories do not receive the raw materials they need and reduce or even stop their own production. Example: if oil is in short supply, gasoline may follow. If services are in short supply, many corporations may follow as services are used in nearly every type of industry.
Factory utilization is shown as a percentage on the market utilization page. It is intended to show the production capacity in the world for each product and the real production each month. The utilization percentage cannot, in theory, become much higher than 100% because only a small number of corporations have production levels higher than 100%.
A quick look at the table will show that this is not true. There are much higher numbers.
The reason for these high percentages is that some players have products in stock; many of them being weapons and ammunition but also other products, and they can offer them on the market.
When large numbers of weapons are offered, it is very easy to reach percentages that are much higher than 100%.
The number of products offered does not mean that these products where produced in the past month. It is the number of products offered in the last month.
The numbers showing in the utilization table represent the quantities that were offered and requested at market price or priced within a small percentage off the market price.
Products that are offered at unrealistic prices and have no chance of being traded, are not counted in the utilization table and do not influence product pricing that is based on supply and demand at reasonable pricing.
Another reason for slightly higher percentages is high production in corporations with a high welfare index. A high corporate welfare index results immediately in a higher level of production. A low welfare index will reduce production. The welfare index is in general a value between 80 and 125.
Most countries and corporations place their orders on the market by the automatic process. You may of course stop the automatic process and start shopping on the market yourself. As there are many products and many orders each month, this may result in a lot of work. Most countries and corporations leave the automatic process in place.
The automatic order placement process is always ordering the products needed for 12 months. This is done in order to prevent huge numbers of orders every day and also to preempt urgent orders for small quantities that are placed in order to prevent shortages. In this way it is easy to see which products are in short supply, and react in time to get them. As products are ordered once in 12 game months, the number of products that may be in short supply in a corporation or the country is generally small.
All the worlds in Simcountry have seen periods of short supplies and many needed products where not delivered on time.
6. Contract delivery of products and weapons [ top ]
Contract delivery of products and weapons is bound by the spending limits. Setting up many contracts for delivery of weapons may cause overspending. In cases of overspending, contracts will be automatically scaled back by 10%. In case of severe overspending that exceeds the spending limit including the available spending space for an additional month, contracts will be updated automatically. The quantity of products in such contracts will be cut by half.
7. Canceling all contracts is free of penalty [ top ]
There are no penalties for the cancellation of any contracts. Contracts can be terminated with no financial consequences. This is valid for all common market, local market and manually closed contracts for any period of time.
The purchase price of products depends on the quality and the purchasing policy. Market price buyers have frequently been the victims of extremely high pricing. When they requested market price for products that were in short supply, prices could jump because some of the offers where at a high price level.
Max pricing is introduced and products that are offered at prices that are far beyond the market price remain unsold. This will reduce the cost of materials and make a whole range of industries more profitable. Maximum profitability levels will probably drop but it remains possible to build very successful corporations.
There are several types of contracts in the game. The objective of contracts is to create a stable situation for countries and corporations and ensure them of timely delivery of the products they need and for corporations, it creates a stable market and reasonable pricing.
The price of the products was fixed at the start of the contract and remained the same throughout the contract lifetime. This was true even for common and local market contracts that are running forever.
We are now updating the product pricing in contracts to the current market price. When contracts are closed, the agreed price may vary from the market price by 50% (higher or lower). During the contract period, the price is updated in all cases where the market price changed so much that the agreed price is outside the 50% margin. This means that if the agreed price varies more than 50% from the current market price, the price will be corrected to either market price + 50% or if the market price is much higher, to market price -50%.
10. Trading Strategies - follow the market [ top ]
It is possible to make the price of products you offer on the market depend on the quality. As the quality of the products rises, the price you request for these products will rise automatically and follow the quality level.
In order to make product offerings competitive on the market, it is possible to make the price trail the quality by a percentage.
Example: If the quality is 160 (60% above base quality), you can choose to trail the quality by -10 percentage points. This will set a price of 150, or 50% above market price but as the quality is 60% above base quality, the price/quality ratio is in fact under market price and the products are attractive.
The lower the trail percentage, the more you will get for the products but they may become less attractive. The trail can be very low for products that are scarce with shortages on the market. Products with a surplus, should trail by a higher percentage.
It is also possible to set this automatic feature in the automation page. This will cause new corporations to have this feature set on when they are created.
The feature is intended to make it easier to offer products and reduces the need for repeated manual resetting of the trade strategies.
11. Shortages and Oversupply on the world markets [ top ]
Product shortages are periodical and sometimes they are followed by oversupply in many products. The gamemaster does not intervene in the market unless Services shortages or some other essential products go completely out of proportion and the world economy is in danger of a complete collapse (closure of most corporations). The economy in the game is less flexible or "creative" in finding solutions for shortages than the real economy and collapse may occur. When the gamemaster intervenes, he never adds or removes large quantities of products and he never changes a shortage in a surplus or a surplus in a shortage. The gamemaster also does not change any pricing.
Such interventions do occur from time to time and corporations will in the future be improved to make their production levels more stable. Our intention is to limit these interventions or stop them altogether.
Corporations that are not producing due to shortage of supplies should reduce their staff to limit their cost and as a result, free their workers to work for new corporations that produce products that are on short supply. This process should be capable of creating a dynamic market that does not require any outside intervention.
The pricing on the world market always depends of supply and demand of products and on the quality of the products being offered.
Although contracts may be closed at market price, actual transactions are closed for the market price multiplied by the quality of the product. This is how the market always works except for contracts and the common market.
Membership of a common market can improve the stability of the economy. Optimizing production in a common market can make the members independent of fluctuations and shortages in the world market.
Some products are produced only on one or two worlds, hence the world specific products. This means that they are produced on a single world or two worlds and not on all worlds. The world specific products include current existing products and some new ones that will be introduced into Simcountry.
14. Description of some of the products in Simcountry [ top ]
Most products are straight forward and do not need a special description. Some do and some examples may help to understand the working of the markets and the use of products.
These products are used to upgrade military unit ammunition quality. One AQU is needed for each piece of ammunition in the unit. To upgrade the ammunition quality of the unit that has 20000 pieces of ammunition by one quality point, 20000 AQUs will be needed. The unit ammunition quality can be upgraded by two points each game month if the products are available.
Car engines are used in the production of cars. The corporations produce about 5 times more motors that the number of cars produced by car corporations. Car engines are currently not used in any other product.
All the corporations are using Factory Maintenance Units. Some use it in very small numbers and many corporations, when fully upgraded, use more of these units. Numbers vary from 2 to 9 per game month in a single corporation. Factory maintenance units must be available for the production process to continue.
Players can build nuclear power stations to produce electricity. Nuclear power stations use Uranium and other raw materials. Countries can decide to purchase nuclear power instead of electric power generated with oil.
Nuclear power stations are more effective and the base price of the electricity is slightly lower than the price of electricity that is generated with oil. The real price however, is determined by market demand and supply.
When a country orders nuclear power, the delivery is added to the electric power stock of the country. The electric power, from both oil burning generators and from nuclear power stations, can be used by the country and can be sold, by the country to its corporations. As a result, countries never have a stock of nuclear power.
Nuclear Power corporations currently require game level 4 or higher.
Plutonium is used in all the nuclear weapons. All nuclear missiles, Tactical nuclear war heads and strategic bombs contain plutonium. Plutonium is expensive and only small quantities are used per weapon.
Both weapons grade uranium and Uranium are used in the production process.
Plutonium trading is only taking place outside the world markets. This makes it harder to get and it is available to players who have cargo shuttles and gold coins to purchase the product. On the other hand, Plutonium must be kept outside the market and have some limitations on who can purchase the product. Trading takes place on the Carina space station.
Plutonium trading through contracts and direct sale in the five worlds will remain possible between countries, enterprises and corporations that belong to the same player. You can produce plutonium and sell it to your own countries and enterprises.
Selenium is use as one of the raw materials in the production of glass. Selenium is traded on the Lyncis space station only.
Selenium producing corporations can be setup in the White Giant and Golden Rainbow worlds. There is no Selenium production on the other worlds. Selenium can be imported by use of trading on Space stations. Trading is also possible on all the worlds, direct selling and contracts for selenium can also be used in all the worlds.
Uranium is used in Simcountry in the production of Weapon Grade Uranium for Nuclear weapons and it is also directly used in the production of Plutonium. These products are of course used in the production of nuclear weapons. Uranium is also used in the production of electricity.
Depending on the way the energy market in Simcountry will develop and possible introduction of CO2 emissions, Uranium use for electrical power may become a strategic choice.
These products are used to upgrade military unit weapons quality. One WQU is needed for each weapon in the unit. To upgrade the weapons quality of a unit that has 600 weapons by one quality point, 600 WQUs are needed. The weapons quality of the unit can be upgraded by one point each game month if the WQU products are available.
The trading for all space products takes place on space stations. All contracting and direct sales for all these products are also possible on all the worlds. Production can take place on all the 5 worlds.
27. Space industry products trade exclusively on Space stations [ top ]
All space products are trading on the Libra space station. The products are used in the production of cargo shuttles. The same products and some additional space industry products that will be introduced later will be used in the production of space fighters.
The production of cargo shuttles is a very profitable business and these cargo shuttles are traded on the direct market.
Direct selling and contracting of these products on all the worlds remains unchanged.
As we have announced last week, the trading of cruise missiles, both land based and sea based is now moved to the Lepus space station. The trading of Cruise missile batteries is now moved to the Corona space station.
Although these products were already trading on these space stations, trading has now stopped on all the worlds.