The correct way to open the elf

Chapter 130 Trade Surplus
It would have been better if they hadn't looked at it. After seeing the items and their corresponding prices, the goblins surrounding the billboard wailed, like a master whose lair had been emptied by bandits.

Their eyes turned red when they saw the two Pet brothers, and combined with their green skin, it was a real red and green drama.

The goblin caravan that rented the airship to the two Pete brothers finally realized what they had lost on this trip, and finally understood why the two brothers were so desperate to hire such a large fleet of airships to fly directly to the barren land in their memory.

Pete shouted, “What are you doing? Remember that you signed the agreement under the witness of the Chamber of Commerce. It is absolutely impossible to go back on your word now.

Besides, after this trip, you will know about this place before others, so you still have the opportunity to make money.

So, now just finish delivering this load of goods for me honestly, do you understand?
Also, you must abide by the camp rules. If anyone breaks the rules and gets caught by the elves here, don't blame me for ignoring you.

This camp is commanded by the great elven sage, Grand Mage Anthony. You all should behave yourself. Don't forget that you are also responsible for feeding the elves with expensive salt for a hundred years.

This opportunity was obtained by our two brothers. Bringing you here is your fortune. Don’t do anything that you will regret.”

After a mixture of coaxing and threatening, the goblins finally quieted down.

"Pate, is the price on this sign real?"

At this point, the brothers Pete and Peder still have to rely on the owners of these goblin airships to accomplish the feat of eating a fat man in one bite, so there is nothing to keep secret.

Pete said, "Yes, this is the price we two brothers agreed on. As you can see, the elves have already written the price on the sign.

After this transaction is completed, you can come here in advance without the other goblins in the Merchant Alliance knowing about it, and buy a large amount of cheap goods here."

A goblin said, "That big shot just now... doesn't seem to be an elf, right?"

Pete said, "Yes, he was a human from another continent who was rescued by the elves. He brought the technology of making non-toxic sea salt from another continent and the processing methods of those exquisite handicrafts to Cattail City.

The elves don't like dealing with us, so he is in charge of the trade here, so don't offend him."

The goblins nodded quickly. The person who made this price list was simply their goblin God of Wealth. They worshipped him so much that who would be stupid enough to offend him?

Feng Yu and his men stood on the slope of the wasteland, looking at the goblins' big green heads swaying not far away, and couldn't help but laugh.

These guys are running around outside every day, and each of them has a bald green head. I guess Old Wang next door to them must be very busy!

Illya, the elf assistant appointed by Feng Yu to be in charge of trade, asked: "Teacher, the first time you sold goods at a low price, it was to attract the goblins to come and trade.

But now that our products have apparently been known to more goblins, why are you still selling them at such a low price?"

Feng Yu said: "Then why do the dwarves in the Moonlit Forest and Snowy Mountains choose our salt instead of the goblin salt that is delivered to their doorsteps?"

"Because our salt is cheap enough. Even if the price of our salt increases again, it is still much cheaper than the purchase price of the goblins' inferior salt."

Feng Yu smiled and said, "So we need to think beyond this question and think about our price. Isn't the steam engine in our camp amazing?"

Illya said: "It's amazing. It frees up a lot of labor and greatly speeds up the production of all products."

"Yes, this is the power of industry, it manufactures products efficiently and in large quantities, and the relative cost will drop to a very low level due to the increase in labor and raw material utilization.

Large-volume products will inevitably require a larger market and will also make our products widely known.

So, do you think that someone will covet our profits and try to copy our products? Of course they will!
You also know that whether it is porcelain or glass, it is not difficult to make. It is just a layer of paper. If it is punctured, it will be worthless.

Therefore, we must use low prices to dispel the desire of others to imitate, so that the cost of possible small-scale private imitation is not much higher than the market price. This will to a certain extent suppress others' interest in privately imitating our products.

When the goblins come to our camp in large numbers, the selling prices of these goods in the outside world will inevitably drop, otherwise they will not be able to digest such a large amount of goods.

Another thing is to occupy the market and build a reputation.

Our products are cheap and of good quality, and buyers have always used our products. So even if there are products of the same price, they will give priority to those they trust and are familiar with.

The most important point, in the field of economics, is called the trade balance.

The salt and porcelain made from soil and seawater in our camp are constantly exchanged for a lot of money. Then the people who buy our products will become poorer and poorer because they cannot make money from us.

We currently have three main products, and with the development of camp technology in the future, there will definitely be more products for sale.

The products we process using the cheapest materials will bring us endless wealth, and we will use the wealth to improve our scientific and technological levels and manufacturing levels.

As for our enemies, they always spend money to buy our things, which only consumes their money and makes them more and more dependent on our products.

This kind of change may not matter in the short term, but over time, as one gains while the other loses, the gap between us and the enemy will become wider and wider.

There are two types of trade balance: trade surplus and trade deficit.

Our camp is now enjoying a trade surplus, and is slowly beginning to absorb the enemy's wealth to develop itself. Everything is going smoothly and we are in great luck.

Our enemies, in turn, will not only consume their own wealth by purchasing our products, but their similar manufacturing industries will also be hit, and they will gradually lose craftsmen and practitioners.

The fewer craftsmen there are, the worse the manufacturing industry will be, and the more goods from the outside world will be needed. This is another vicious circle, which will eventually even affect the development of weapons industry technology and hinder the enemy's military growth.

This is the horror of a trade deficit. With the loss of wealth and the large-scale dumping of foreign goods, their own strength will become weaker and weaker.

Once a trade surplus or a trade deficit occurs between two hostile forces, it becomes a trade war, a kind of competition that does not involve bloodshed but is a hundred times more terrifying than a real war.

And now, through the goblin trade, we have the conditions to start a trade war with humans."

(End of this chapter)