To breakeven on a US$100 taxable investment, you must earn US$10 in interest. State and Federal income taxes reduce your profit to US$6 for year. The US$106 will buy same amount of goods and services, as did US$100 a year earlier. That will be an actual breakeven, not a profitable investment.

Many limited-risk cash investments do not meet breakeven test. U.S. Passbook Bank Account interest rates are a prime example of an annual losing investment strategy against inflation and taxes.

Cash is a Position and a Good Measure of Risk/Reward

What you can earn with limited risk cash investments is a good guide to what ROI you should expect from high-risk investments. Here are a few current examples of limited risk cash positions.

1. Cash invested in a 401k Retirement Plan. It's in mutual funds operated by a major U.S. Insurance Company. The ROI is subject to deferred taxes. Current annual ROI is 22%

2. U.S. Dollar accounts in European Banks are paying between 11% and 15%. All these banks survived 1929 Crash and, later, 10,000+ bank failures of 1932.

3. Short selling OTCBB stocks has paid about a 32% tax free ROI for past decade. With a 98+% failure rate of OTCBB companies, there is less than a 2% risk of failure in such short sales. And there are ways to mitigate that risk to well under 2% risk. The potential reward is 100% and usually takes less than three years to achieve. However, you do need a significant cash reserve position to begin this investment game.

4. California Real Estate has shown a consistent 20% annual appreciation for past several years. When you put 20% down on a property, your annual ROI is 100%.

The GVIC ROI

The Global Village Investment Club (GVIC) risk is less than that of OTCBB short selling. If you assume GVIC member's profit is taken in 5.5 years, ROI is 100%/year.

Risk/Reward

You can usually determine risk of any investment by knowing failure rate of firms in that industry. Conservative investments like municipal bonds have low annual failure rates. Speculative Investments, like commodities and futures trading, have high failure rates. Once you know risk, you must adjust reward by inflation and taxes to find breakeven point for investment.

Many conservative investments are bad investments. Most high-risk investments are bad investments. If more investors viewed ROI as a favorable Risk/Reward ratio, there would be fewer wealthy people dying broke. And far fewer middle income people making terrible "bets" on stock markets.

To contact author: Visit Beowulf Investments website: [http://home.earthlink.net/~beowulfinvestments/] Or, visit Global Village Investment Club Website: [http://home.earthlink.net/~beowulfinvestments/globalvillageinvestmentclubwelcome/]

To be a multinational corporation requires that you print your corporate money in a country issuing one of five global currencies. Japan and Switzerland only list companies with multimillion-dollar annual revenues. So, a multinational corporation should seek to be listed in Great Britain, Germany or United States. In fact, if anyone wants to undertake listing VCP multinational corporations on Alternative Investment Market of International Stock Exchange (AIM) in London or on Frankfurt Stock Exchange, I'd be willing to discuss a working arrangement with them. However, I don't believe either stock exchange is best possible way to create corporate cash.

A Tour Guide

I have knowledge and contacts that allow me to access U.S. stock markets. I've found a path for VCP Multinational Corporations that avoids excessive costs usually associated with traditional U.S. Securities and Exchange Commission registration process. I believe that shares traded in States have greater global exposure and access to more potential investors than those traded in Europe. Though it's not only workable tool, going public in America, I'm convinced, is best money-printing tool for multinational corporations.

Triangular Trade

"Triangular trade" is another essential profit tool of Global Village. The multinational corporations that compose DIA (U.S. Dow Industrial Average) use it to prosper. Had founders of these companies, in 1880s, foreseen future, they would never have incorporated in Delaware. However, like many things in business, it is often impossible to change a decision, years after it was made. So these DIA companies shelter their global profits using triangular trade. Their product may be made in USA, but on paper, it's exported at nearly cost to a subsidiary in a tax haven country. The tax haven subsidiary then exports product to overseas buyer and earns profit.

The 21st Century VCP version of triangular trade is simple. In beginning, incorporate in a tax haven rather than Delaware, Nevada, UK or Japan. Manufacture your quality product in country that offers you best incentives and benefits to do so. Sell your product to Global Village taking payment in a country that doesn't tax foreign-source income.

Real International Business

Doing International Business isn't simply selling your product beyond your borders. It isn't a matter of seeking investment in your company from overseas. These things may benefit your company. But, they won't make it a multinational corporation. It's adoption and use of business tools of Global Village that allows your company to do international business internationally.

To contact author: Visit Beowulf Investments website: [http://home.earthlink.net/~beowulfinvestments/] Or, visit Global Village Investment Club Website: [http://home.earthlink.net/~beowulfinvestments/globalvillageinvestmentclubwelcome/]