Thursday, April 21, 2022

B2B or a Barter trade in new era

  • Internet can make Business to Business (B2B) trade as a Barter trade. 
  • For example, I am in a Agribusiness cum property trade (https://pritranjanjha3.blogspot.com/2021/11/blog-post.html), and I need roof sheet and farm fencing facility, I have no money, and getting credit is not easy and it also increases extra cost, that is Interest, that is a burden for my business.
  • Also property is a fixed asset, and different people/company, evaluates its monetary value in different ways. All Seller, wants Higher price, while all Buyer wants Lower price. Match between the Demand & Supply makes the trade possible. So I too search for a company that pays me good price for my property. 
  • A company selling a product, like roof sheet and farm fence, should have skilled work force that can install the roof sheet and farm fence. Company's work force will be better then the local labors around me, or a skilled staff from the company should be able to visit with the product and guide and make use of the local labors. 
  • Local politics can hamper the work, so the company fully dependent on its own work force for the service will be good for the company. A good staff/labor/worker focusses on the task completion in the given time & budget, so as to delight his/her employer, while a staff/labor/worker in politics, tries to harm/kill the employer. There is a saying, "अपने इलाके में तो हर कोई शेर बनता हैं" (Everyone tries to become a lion in his area).
  • If a Roof sheet and farm fence business in Bihar, becomes my property buyer, then extra cost will be tax to the State Government, Logistic cost & Fees for the Property transfer (A).
  • For Roof sheet & farm fence business in other states of India, apart from cost (A), there will be additional tax to the State governement, where the Company is located, and logistics cost will also increase (B). (B) > (A)
  • For a Foreign company, Apart from (B) costs like Import costs & duty (tax), will further increase, the costs (C). (C) > (B) > (A)
  • In current Legal scenario, It will be diffcult for the Foreign company to buy a property in India. But there are several ways to make it possible. 
    • The country of the Foreign company, should have good exports from India and also good relations with the Indian Government. People movements from India to the country should be easy & frequent.
    • If a foreign company evaluates good price for my listed property, that covers its all costs, then they should be able to Square Off the costs, from the payments made to India for its Exports.
    • Income from Visa charges, will also help in Squaring the Credit service. 
    • For a multinational company, with investments in India, trade becomes easy, as the company can deduct its Credit cost from the purchases from India and Taxes to the Indian Government.
  • In the new era, where India is the member of World Trade Organisation, I can expect a foreign company to provide me Roof sheets and farm fencing services, through purchase of my listed property. 
  • Indian Businesses should become competitive at the international level, proactive, active and smart towards the new era of Barter trade. 

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