Economics/Economy

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Question
QUESTION: Hello Warren,

Can you please let me know if someone were to ask you what is your country's economy? How would you answer and what are the things you need to mention or cover? Can you please give some examples in detail?

Thanks
Dinocatty

ANSWER: Dinocatty, since you seem to know me well enough to call me by first name, you must have read my profile. In it, I say that I do NOT answer questions marked PRIVATE because, in my experience, they come from CHEATERS .

On the off chance, that you're not a cheater, let me ask you a question: What compelled you to ask this question?

One other thing: The study of economics teaches people to think more precisely. That should be reflected in, among other things, the 'Subject' of one's question. In your case, the subject is, as you know, 'Economy'. If that's your idea of precision, you need to work in some dead-end government job.

---------- FOLLOW-UP ----------

QUESTION: Dear Mr. Warren,

I am sorry for calling you by your first name. In fact this is my first time seeing you in the internet as I want to get my question answered. Please accept my apology.

2. I maked my question as private because I do not wished to be known over the internet.

3. I am sorry I do not really know the meaning of "Cheater". If it is someone who cheats then I am not.

4. I took the initiaive to ask you because I thought you are the best person to help as I am quite ignorant regarding my country's economy. Very often when I have foreign friends visiting me I would be asked 'How's you enocomy here (country)? I felt very embarrassed because I do not know how to answer.

Thank you
Dinocatty

Answer
Hi, Dinocatty--

Sorry to be so long responding to your follow-up. Our workload is heavy here just now. That's now an excuse, mind you. But it is a reason. :-)

Thank you for your reply. I feel much better about helping you now. Apology accepted. In the future, I recommend that you always read the AllExperts.com "profile" of the individual before submitting a question. Mine is here. As you can see, I don't take tests, do homework, or write term papers for students who want me to help them cheat.

Now, there is much you can do to help yourself, especially with broad questions such as "What is your country's economy?" You can use Google on the internet to find information. Here's how to do that:

1. With your browser (Internet Explorer, Mozilla, Chrome, Safari, etc.) open, hit the Ctrl and L keys at the same time and release them. You will see that you have 'chosen' whatever is in your browser "window" - that's the long narrow space near the top of your computer monitor that has the web address in it (i.e., www.etc). Because that web address is now highlighted, whatever you type next will replace what's in there now.

2. Type the following, including the beginning and ending quotation marks: "definition of economy"

3. Hit the Enter key on your keyboard.

4. The screen that comes up next comprises what Google thinks are the most relevant links to websites related to whatever you put between the quotation marks just then. In this case, that is the words </b>definition of economy</b>. The hyperlinks (they're underlined, probably in blue, on your screen) your see comprise the first page of what are called "hits".

5. Whenever you're looking for information related to the economy or to business, look for such websites as Investopedia, Wikipedia, and EconLib.org. Each of those is excellent.

6. If you followed my directions in Steps #1, #2, and #3 above, you should see www.investopedia.com/terms/e/economy.asp‎ and also en.wikipedia.org/wiki/Economy‎; each of those appears below the underlined hyperlink for it. On my screen, those are the second and fifth website addresses shown, but yours might be different.

7. Click on each of those and start reading. Most of the time, especially on Wikipedia, you'll see links to other sources of information. On Wikipedia, you will also see references at the very bottom of the Wikipedia page; most of those will also have links. You can click and click and click and read and read and read until you are comfortable with what you have learned and found.

It's really important that you learn how to do this, Dincatty. It will open a whole new world to you, believe me.

Please post again in response my reply here and let me know what you learned about the "definition of economy". I care, man.

Best regards--

Warren

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Warren D. Miller, CFA, CPA, ASA

Expertise

My expertise in economics is limited to three sub-disciplines: Austrian economics, industrial organization, and evolutionary economics. Questions dealing with macroeconomics and other sub-disciplines of the subject should be submitted to those who have the appropriate expertise. N.B.: I DO NOT ANSWER QUESTIONS MARKED 'PRIVATE' because I believe that knowledge should not be hoarded. I also believe that such questions are likely to come those trying to cheat. Also, as one who was a full-time academic for half a decade, I can recognize test/homework questions several time zones away. Do not demean yourself by submitting such questions to me. Those who do so are cheating; I WILL call you out publicly. I have a zero-tolerance policy for cheating and dishonesty. In addition, please don't emulate the businessman who posted a request for help in August 2008. He expressly denied that he was seeking "investment advice" and said that his query was for, and I quote, "educational and informational purposes." Later, he allowed as how his questions related to the possible purchase of a $500K piece of equipment. I said I thought he had misrepresented himself. Bottom line: high-end business consulting is how I make my living. I am the sole support for my family. Please respect that fact and don't try to get for free what our clients pay for. If your company is big enough to have a sophisticated problem, it can afford to pay for the expert advice we and others provide. Beckmill Research, LLC, is a 95-octane firm. We're small, but we've been at this for nearly 20 years. We know what we're doing. Segue: Early on, some asked me for career advice; I gave it. I now get many such requests. The demand for a valuable good that is free is unlimited, so I now charge for that advice. Email me: cfa2005@gmail.com. Finally, PLEASE DO NOT ASK FOR INVESTMENT ADVICE. I am not licensed to provide such advice. If you want such counsel, talk to your financial planner or other financial adviser.

Experience

I work with Austrian economics (which differs in major respects from the traditional economics), industrial organization (which is about industry structure, conduct, and performance), and evolutionary economics (almost, but not quite, the economic analog of its biological counterpart) every day in my work. I appraise closely-held businesses, provide exit-planning services, and offer high-level strategic analysis, advice, and solutions to CEOs and owners of mid-sized businesses. Understanding, applying, and writing about these disciplines is an essential part of how I have made my living since 1993.

Organizations
CFA Institute, Strategic Management Society, American Society of Appraisers, Academy of Management, Culver Legion, National Association of Scholars.

Publications
CFA Magazine, Strategic Finance, Valuation Strategies, Journal of Advanced Property Economics, Harvard Business Review, American Fly Fisher, CFA Digest, CPA Expert, Business Valuation Review, among others

Education/Credentials
Chartered Financial Analyst designation (2006); Accredited Senior Appraiser in Business Valuation (2006); Certified Public Accountant (1992); MBA - Oklahoma State University (1991); Completed all of my Ph.D. coursework in strategic management - Oklahoma State University (1983-87); BBA in finance and accounting - U. of Oklahoma (1975)

Awards and Honors
Business Valuation Volunteer of the Year (2001) - American Institute of CPAs; Winner - Oklahoma Humorous-Speaking Contest - Toastmasters International (1971)

Past/Present Clients
Names are confidential. However, the "sweet spot" of our target market is companies that are too big to be small and too small to be big. Usually, those are companies with employees in the 15-to-100 range. At the low end of that range is where companies can first take advantage of the specialization of labor. However, having everyone do everything is a tough habit for many--most, I would argue--small enterprises. That is why they not only remain small, but also fail to survive beyond a second generation. Only 5% (one in twenty) companies make it to the third generation of ownership.

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