ironman
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I hope you can implement the same analogy to JF-17, but with an exception that the license is "Co-Owned" by Pakistan and China (just like Sony-Erricson, Fujitsu-Siemens etc).
Regards,
Sapper
Hi.. Why didn't you look at my previous post ??... Usually in a partnership business, profit margin is calculated on the basis of capital contribution. In simple terms you have to contribute equally to get half profit. Here in this case Pakistan hasn't contributed a proper capital to the development. I will try to explain...
Main factors of Production
Factors of production - Wikipedia, the free encyclopedia
* Capital This has many meanings, including the financial capital raised to operate and expand a business. In much economics, however, "capital" (without any qualification) means goods that can help produce other goods in the future, the result of investment. It refers to machines, roads, factories, schools, infrastructure, and office buildings which humans have produced in order to produce goods and services.
* Fixed capital This includes machinery, factories, equipment, new technology, factories, buildings, computers, and other goods that are designed to increase the productive potential of the economy for future years. Nowadays, many consider computer software to be a form of fixed capital and it is counted as such in the National Income and Product Accounts of the United States and other countries. This type of capital does not change due to the production of the good.
* Working capital This includes the stocks of finished and semi-finished goods that will be economically consumed in the near future or will be made into a finished consumer good in the near future. These are often called inventories. The phrase "working capital" has also been used to refer to liquid assets (money) needed for immediate expenses linked to the production process (to pay salaries, invoices, taxes, interests...) Either way, the amount or nature of this type of capital usually changed during the production process.
* Financial capital - This is simply the amount of money the initiator of the business has invested in it. "Financial capital" often refers to his or her net worth tied up in the business (assets minus liabilities) but the phrase often includes money borrowed from others.
Apart from that, being an exclusive industry the most important Intellectual capital.
Intellectual capital - Wikipedia, the free encyclopedia
The term Intellectual capital collectively refers to all resources that determine the value and the competitiveness of an enterprise. As such, it includes as subsets the attributes that concur to building all financial statements as well as the balance sheet
Mainly made of elements (such as the quality of employees or the reputation of a brand among consumers) for which there is no consensual model for monetary expression.A more precise name for IC would therefore be "non-financial assets"
The best we can say is Pakistan's share is only limited to financial capital(that too a 50%) and the rest which values several times more is the part of China. And the 'intellectual capital' the most valuable in these kind of industries received via years of hard work and billions of spending, there is no substitute for Pakistan.
I'm not speculating and BS' ing about Pakistan's achievement in a negative way. They did a good job.. signed a fair deal with China with a moderate profit margin and hopes to recover the expenses by Foreign sales. Read this with "Jf-17s potential market" and "Pakistan doing the marketing".
Once again Reminding you that This is Pakistan's first step... only the first step.