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Resources The resource trade and management is a very big part of the game, and we highly encourage you

to read the strategy supplement on that topic for further understanding. There are a total of 27 resources broken down in 6 groups, from primary to tertiary. The total production of these resources equals to the GDP, so each resource is also an economic sector of activity. Some of these resources are also necessary for others to function properly (for instance, you need iron and steel to build automobiles). The window lists, for each resource, whether the resource is legal or not on this country (a green or red circle), and whether it’s public or private. A country that has a large part of its economy under public management will rank economically to the left (state controlled). Then, each resource has a production value, a consumption, a trade and an available value. All of these are in dollars. The equation is: Production – Consumption - Trade = Available

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Trade can be either positive (you’re selling more) or negative (you’re buying). The available column is either in green (you meet your demand) or in red (you need that resource). Increasing production raises, at a cost, the production level of your country. This can be used to be more independent of suppliers, or to hurt another exporter. Be advised, though, that international production tends to balance between offer and demand, so you can’t increase production without limit for a sector where there’s no demand. The production will naturally decrease over time. Making a sector illegal doesn’t stop entirely the production and consumption, like making drugs illegal doesn’t make them disappear. It does, however, hurt production and use. Lastly, making a sector public or private, in addition to changing your economic philosophy, will change the levels of production and the way the income is managed. For instance, a public sector’s trade goes directly in the budget, where a private sector’s economic activity will be taxed. The GLOBAL TAX MOD sets a tax which is applied to all resources, in addition of each resource’s sector tax.\n\nit can be useful to easily change the tax level on all resources at once. Taxing a resource provides income, but also slows down its production growth rate. Taxes are only applied on resources managed by the private sector. Private Management When the control is set to Private, the private sector (automatic) controls how much Resources are imported and exported through the calculation of Offer and Demand. After the country’s needs have been addressed, all Resources surplus are offered to the world market. Taxes can be applied to each traded Resources (imported and exported). Exported resources increase your GDP and imported resources decrease it. The value of importing resources is deducted from your country's GDP, on which the personal income tax is applied. This means that you will receive less personal income tax revenues if your country imports a lot of resources. When a resource is controlled by the private sector, the taxes are applied to the quantity imported or exported. For example, if you import 1000$ and tax the sector at 10%, you will receive 100$ in Trade income in your country's Budget. So, up to a certain level, it's better to tax the population rather than the industry. However, when you tax it too much, your country's approval and stability rating are decreased, resulting in a lower economic health, which then harms your overall production.

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Public Management When the control is set to Public, the government (through the player’s actions) controls how much Resources are imported and exported. Public management has the following behavior and effects: The player decides how much of each Resource he wishes to buy or sell The total cost of each Imported Resource is directly applied to the Budget as a Trade expense (1:1) The total revenue generated by Exported Resources is directly applied to the Budget as a Trade revenue (1:1) No bonus or penalty is applied to the country’s GDP No Trade taxes can be applied Slows down the country’s natural capacity to increase its production to meet the demand So, if the resource is controlled by the government (public sector), you can't tax it. However, is you sell 1000$ of a resource while it-s controlled by the government, you get 1000$ of income in your Budget. Resource production vs. international offer and demand If the international demand is high for a particular resource, that resource’s production will automatically increase over time. The rate at which is grows depends on your country’s Economic Health. The production also grows more slowly for resources controlled by the government. So if there is a growth opportunity, countries with a better Economic Health will be faster to adapt and will acquire a larger the market share. This adjustment is made automatically. If the world’s production is too low and creates resources surpluses, the production will decrease automatically. As the countries buy resources in order of their Economic Rank and from countries with high Economic Ranks first, countries with lower Economic Rank are the first ones to be affected by a resource surplus. They are the ones which won’t be able to sell their resources, so their production will be the first to decrease because of a world over-production. Like in real life, the rich gets richer, the poor get poorer. This is why it’s very important to have a good Economic Health and to get your country high in the world’s Economic Ranking.

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Increasing the production Resources production can be increased artificially by clicking the INCREASE PRODUCTION on the resource window. This option let you invest money to stimulate a resource’s production by a fixed percentage. Although this is very expensive, it creates an instant boost to your production, increasing your country’s market share. Keep in mind that doing this might create a surplus on the world market which will cause the production in every country (including yours) to decrease over time. The bigger market share acquired this way may reduce this effect and providing you with a slight advantage compared to other countries. Resources and country development The game features 27 different resources, regrouped in six (6) categories as seen in the table on the right. The categories are in order of importance. A country’s most important need is to meet its population Food requirements. It will than need Energy and Raw materials to meet its basic needs. The more developed a country gets, the further it goes down the list. Failing to provide the required resources to a country prevents it from growing and developing itself. It has a direct effect on human development level and economic health. The different resources categories set a maximum value to the human development rating. A country that can only provide Food to its population will have a low human development level and won’t be able to raise it higher than a certain level. If the country’s economy allows it to produce or acquire energy, its economic activity and human development level will be able to increase up to a certain level, and so on. So there is no point in producing or acquiring high level resources if the low level resources requirements are not met. If a developed country can’t meet resources requirements it was able to meet in the past, its economic activity will quickly decrease proportionally to the lack of resource. The human development level will then slowly decrease in the same proportion until the situation is corrected. So the resources have a direct impact on the development level. The opposite is also true. A country’s human development level influences the kind of resources that may be produced. A country with a low human development level can’t produce high level resources. Uneducated workers can’t produce pharmaceuticals resources or provide engineering services.
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Food & Agriculture Cereals Vegetables & fruits Meat Dairy Tobacco Drugs Energy Electricity Fossil fuels Raw Materials Wood & paper Minerals Iron & steel Precious stones Industrial Materials Fabrics Plastics Chemicals Pharmaceuticals Finished Goods Appliances Vehicles Machinery Commodities Luxury commodities Services Construction Engineering Health & care Retail Legal services Market & advertising
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Resources Legality Resources can be set to be legal or illegal. Legal resources are freely used and traded internationally. They generate GNP, trade revenues or import-export taxes and economic activity. On the other hand, illegal resources don’t generate any revenues or economic activity. There can still be a demand and illicit production for such resources, but it won’t give any advantage to the producing country. Illegal resources are traded on the black market. If most countries set a resource as being illegal, it becomes rare and the demand increases. A country could decide to legalize a resource that most other country consider as illegal and make a great amount of profit by being one of the only producer for that resource or by setting import taxes on that expensive resource. The demand being very high, the profit will be considerable. However, all the countries in which that resource is illegal will disapprove that decision. It will effect negatively the foreign relations with all those countries. Production & Domestic Use Each country produces a certain amount of each resource. Depending of its demographic and economic situation, it will also use those resources. The game’s starting production and domestic demand use real-world data. They will then be influenced by the evolution of each country. As stated in the previous section, the domestic demand for each resource category depends on the country’s economy and its population’s human development level. Also, some resources require other resources in their production. For example, Iron & Steel is needed to build vehicles or appliances. An increase in the Vehicles production will automatically create an increase in the Iron & Steel resource domestic demand. On the other hand, a resource shortage might affect the production of another resource. If a country can’t meet its Iron & Steel requirements, its Vehicles production will drop.

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The following tables describe the resources interdependencies: Resources Cereals Vegetables & fruits Meat Dairy Tobacco Drugs Electricity Fossil fuels Wood & paper Minerals Iron & steel Precious stones Plastics Fabrics Chemicals Pharmaceutic als Appliances Vehicles Machinery Commodities Luxury commodities Construction Requirements

+ Cereals + Cereals

++ Machinery ++ Machinery ++ Machinery ++ Electricity + Machinery ++ + + ++ ++ ++ + ++ + ++ ++ Chemicals Electricity Electricity Chemicals Iron & steel Iron & steel Iron & steel Plastics Plastics

+ Electricity

+ Electricity + Electricity + Electricity ++ Plastics + Electricity ++ Chemicals ++ Chemicals ++ Wood & paper + Fabrics + Fabrics + Machinery + Electricity + Electricity + Electricity

Engineering Health & care ++ Pharmaceuticals Retail + Market & advertising Legal services Market & advertising

++ Iron & steel +

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