Private and Public Corporations versus State Corporations
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Private and Public Corporations versus State Corporations
Many players are blocking private corporations and do not allow them to set up in their countries.
This is a major error.
Private and public corporations contribute much more to the host country than any state corporation.
Private and Public corporations are paying a percentage of their revenue to the host country. This is a percentage of the product sales they make, not their profit. They make these payments even if they are not profitable. In addition, they also pay taxes to the country.
The percentage of revenue they pay depends on their quality level. At top quality, the revenue percentage paid to the country can reach 35% to 40%. At low quality levels, the percentage is 10% to 15%.
State corporations are less efficient and spend more on maintenance and they also spend more on corporate fixed cost than private and public corporations. This reduces their profits and their market value. The difference in these costs is growing.
As a result, the profitability of state corporations will decline while private and public corporations will continue to be more successful, make high revenue and profit and contribute heavily into the country treasury.
In addition, private and public corporations do not need any military protection as they are immune to any war activity and cannot be damaged or destroyed. State corporations are and remain prime targets in any military conflict.
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