Romney has utter, exaggerated faith in his managerial know-how, his technocratic mettle.
It stems from abiding features of the American economy, such as managerial know-how, a prized but uncounted commodity that Americans export to their subsidiaries abroad.
Were intangibles measured properly, the current-account deficit might be smaller, since America exports lots of managerial know-how and other intangible assets.
Hence, he needs high cognitive skills and high managerial know-how.
Estonia's problem now is how to inject enough capital and managerial know-how to bring its Baltic wonder boys to the world stage.
As a matter of fact, in industrial countries, industrial policy has shifted from reducing costs of production to the increase of managerial know-how and the intensification of links between firms.
The examples are Ashaka Cement Plc, which outsourced its operations and services to Blue Circle industries of United Kingdom; Dangote Cement, Gboko (Benue) plant which acquired the expertise of Pakistani who have managerial know-how and expertise to give quality services and operations.
These golden handshakes, however, do not establish a market value on executive talent because it's impossible to know how much of the pay is for managerial performance and how much is a payoff for facilitating the buyout transaction.
From a managerial point of view, firms, as well as IJV management, need to know how the partners evaluate the venture's performance.
But the ripple effect on managerial compensation has dented his profits, which he says have fallen over the past year. . "We know how important it is to get good managers, so we sacrifice the bottom line to get them," he said.
