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Chapter eighty-four, evil free trade(1/2)

The spring breeze of reform blows over the British Isles, but Britain has not been able to change its appearance. It is not that the reform cannot be done, the key to the problem lies in how to reform.

The domestic economy continued to decline, which stimulated the British. The elite groups knew that Britain had reached a fork in the road and social reforms were necessary.

Despite economic problems, Britain is still at its peak. The saying that prosperity and decline is not popular in the European world. They have been so awesome after reading the history books of Britain.

If it weren't for the rise of the Holy Roman Empire, which added pressure to them, it would probably be that most British people would not even have a sense of crisis.

In fact, even now the British do not have a strong sense of crisis and do not think that the powerful British Empire is at risk of overturning.

There was no way, Shinra was too tranquil. Even if she created a super battleship, she would just come out and wander around and go back.

The arms race originally expected, because the Vienna government did not follow up in time, made the British lose interest.

After all, there are still a lot of old-fashioned warships in Britain. At this time, the "Dumpling Competition" will be launched, and all the old-fashioned warships in front will be scrapped.

The landlords have no surplus food, especially during the downward period of the domestic economy, the government's fiscal revenue has not increased but decreased, and the budget has to save some money.

Anyway, there is protection from the Straits, and as long as the Royal Navy's advantage is still there, everyone will not panic.

If there is insufficient external pressure, the internal situation will naturally not be united. After all, reform is also a double-edged sword. Some people get benefits from it, while others suffer losses.

The vested interest groups are unwilling to give up their interests, and conflicts arise. From the beginning of the reform, the British Parliament is in a quarrel mode.

The British government has very limited power these days. Not only is it restricted by parliament, but it is also under the pressure of the king.

As the king who reshapes the glory of the monarch in Britain, Edward VII is not an eraser seal. It is impossible for the cabinet government to do whatever it takes.

The conservatives are strong and the government has such a strong internal control, so the Campbell government's reform progress is naturally not fast.

For a big country, reform is naturally slow rather than urgent. It doesn’t matter if it is slower, but if it is faster, big problems will arise.

But for enterprises, the situation is completely different. Traditional industries are not bad, they have built moats themselves, and they can live even if there is an impact.

The real unlucky one is the emerging industry. Due to the small local market in Britain, it is inherently inadequate, and it is a step slower to start? Before we could fully develop, competitors came here.

The most typical ones are mechanical equipment manufacturing and automobile industry chains. Either the related companies have gone bankrupt? They are on the verge of bankruptcy.

...

Stepping out of the government office building? McCall's smile has disappeared. As the boss of the leading high-end machine tool production company in Britain, McCall's life should be very comfortable.

But the reality is exactly the opposite, because of misjudgment in the Second Industrial Revolution? McCall's machine tool factory has always focused on traditional fields.

Not only his family? The British machine tool manufacturers have plunged into the steam engine field and have no layout in the emerging power field at all.

With the large-scale popularization of electricity, electric power has also emerged and gradually occupied a dominant position in industrial production.

One step slow? One step slow.

By the time McCall realized it? Competitors' products had already entered the British Isles. With their excellent performance and low operating costs, a large piece of cake was quickly snatched from them.

Thanks to the conservative British capital, he was not diligent in replacing equipment, and the steam engine was still worthy, so he was not completely eliminated? McCall's factory still survived.

However, with the strong entry of competitors, their orders were still stolen? Especially the overseas markets were almost completely lost.

The market share has decreased, in order to survive? The British machine tool company that chose the wrong path has been passively trapped in a cruel price war.

Even leading companies?                                                                                                                                                                                                                                                             �

Changing the track is simple, but it is not so easy to do it on a new track.

In order to survive, McCall had to ask the government for help.

Don’t talk about “free economy, opposing government interference in the market”, those are slogans that are shouted when needed; now if you don’t need it, you will naturally have to lose it far.

As the leader of the "high-tech" industry, there are always some privileges. Regardless of whether the technology has lagged behind international peers, McCall's machine tool factory is still the number one player in China.

As long as the London government does not want to see the high-end machine tool field and falls under the control of its competitors, it must support local enterprises.

For his own personal interests, McCall, a teenager who once advocated free trade, has now become a firm advocate of "trade barriers".

There is no way, without using extraordinary means, normal business competition will not be able to beat competitors at all.

Even if McCall is cruel to increase his R&D budget of 50,000 pounds, it is far from comparable to the investment of his competitors.

It is technically backward and has insufficient R&D investment. It is obviously a dream of spring and autumn to rely on technological breakthroughs to overwhelm competitors.

It is not impossible to continue to increase investment, but McCall is first of all a capitalist. For capitalists, interests are the first priority. As long as you can make money, it doesn’t matter whether you can surpass your competitors.

If you really invest unlimitedly, you may be able to catch up with it technically, but the return on investment will definitely not be able to meet people.

If you can't make money, it will be useless even if you become the world's number one.

Investors have only one requirement for a company - to make money; there is only one indicator to evaluate whether a company is excellent - to make enough money.

McCall has long passed the age of junior high school, so he naturally would not have put all his wealth on just for a single name.

Instead of conducting scientific research and trade, it is better to conduct political public relations and directly block competitors from the country.

The domestic market alone may not allow companies to make a fortune, at least they can guarantee long-term profits.

As long as there is enough time, McCall believes that his company will catch up with him and then compete with international competitors.

As for how long it will take, no one knows. Maybe it will take three or five years, or maybe it will take twenty or thirty years, anyway, hope will always exist.

...

No matter how the situation changes, as long as life continues, banquets are always indispensable.

Leaving Government Street, McCall drove to the suburbs in a luxury car produced in Shinra, with the destination of a manor named "Peter".

Tonight, there was a banquet organized by business tycoons here. As an important member of the industry and business circle, McCall was also invited.

Although they arrived early, the manor was still crowded with people, and there were obviously many people who suspected that they were the same.

I don’t know when the “banquet” is no longer a simple “banquet”. Most of the time, people attending the banquet have their own purposes.

When he entered the venue, McCall found his own circle. McCall was once the focus of the banquet, and there were a group of people flattering him wherever he went.

Unfortunately, the good times did not last long. With the intensification of competition in the machine tool industry, machine tool companies' voice in the market is constantly decreasing.

Gone are the era when production orders were ordered a few years later, when goods were relied on relationships.

In order to survive in the company, McCall had to give up his face, actively participate in social communication activities, and strive to maintain the relationship with customers.

Of course, this is not enough. Capital is profitable, and if the product quality is not good, no matter how good the friendship is, it will not be a problem.

One of the important factors that can maintain the current basic market is that everyone is in the same consortium and has a certain proportion of cross-holdings.

Everyone is a community of interests. When the product is cost-effective, everyone is more willing to use their own products.

If the performance is incomparable, then you can only kill the price. The machine tool industry, which was originally a huge profit, has reached a bargain price in recent times.

The pure machine tool business is now losing one unit. If it weren't for after-sales service, McCall's machine tool company could consider closing the door now.

After a short time, I had a glass of wine and had a few touches with the visitor. McCall asked with a smile: "Byron, I haven't seen you for a long time. How are you doing recently?"

No matter how much pressure he is, he is very enthusiastic about his customer McCall. It is this positive marketing attitude that allows McCall to overwhelm his domestic peers and firmly sit in the throne of the leader in the segmented track.

The middle-aged man shook his head and replied with a wry smile: "It's very bad. The damn Austrians are like big rats, constantly seizing our wealth.

I haven't lived a comfortable day since they launched the new model last year. To be honest, I have made three layoffs since the beginning of the year."

This is no secret. Just look at the brand of cars that are running around and you will know what life is British auto companies living.

The characteristic of industrialization is that the more products the same type are produced, the lower the production cost of a single product.

The British automobile industry started late, and it can even be said to be very early. As early as 1680, the famous British scientist Newton conceived a jet car. Although jet car was not successful, the concept of automobiles was proposed.

In 1804, British engineer Richard Trivesic built the world's first steam engine car, kicking off the British automobile industry.

Unfortunately, the king of the beginning was finally played into bronze. The history of automobile development since then moved from Britain to France, and then to Shenluo.

Steam engine cars are also cars. Although they are not very convenient, they are still valuable in specific occasions, so they are still produced in a small amount.

Logically speaking, British auto companies with industrial background should not fall behind. The key to the problem lies in the Second Industrial Revolution.

Missed the Second Industrial Revolution and failed to keep up with the internal combustion engine technology, automobile engines became the biggest shortcoming in the British automobile industry.

If your own engine performance cannot keep up, you can only import it from overseas. Anyway, it is the era of free trade and you can buy it if you want.

Core technology is subject to others and it is impossible not to pay a price. The most direct manifestation is the increase in production costs.

Just because the engine is expensive and can be tolerated, at worst, you can make less money.

The problem is that the production capacity of automobiles in Britain is very low, and the output of spare parts is not high, so the production costs will increase if the production is less.

Most of the locally produced spare parts are not only expensive than imported ones, but also their performance cannot keep up.

Supporting domestic products does not exist. Capital pursuit of profit is naturally a cost-effective buy. The direct consequence is that the British automobile manufacturer has become an automobile assembly factory.

In addition to being the name of a car manufacturer and having an additional car logo, they can also do their jobs in auto repair shops outside.

With the development of technology, information has become more and more transparent. After discovering this, more and more auto repair shops have started to cross-border, intensifying market competition.

The competition in China was very fierce, but unexpectedly, international competitors came again. With their performance advantages, many of Shenluo's car brands have gained a foothold.

First of all, high-end brands fell. Just look at the cars in the manor and you will know that they are almost all imported cars.

Including the car manufacturer Byron, the car is also imported. There is no way, the performance of its own products is really poor. For the sake of life safety, everyone knows how to choose.

If the high-end market is lost, it will be lost, and there will be no sales. Before the influx of imported cars, the most important means of transportation in Britain was still the horse-drawn carriage.

It’s different now, and a large number of cheap cars are also pouring in. Assembly factories without core technology naturally have no good days, and a large number of market share is squeezed out.
To be continued...
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