Mercantilism Analysis

Mercantilism Analysis
Adam Smith and David Hume were the founding fathers of anti–mercantilist thought. There were number of scholars who found many limitation of
mercantilism even before Adam Smith developed his theory that could fully substitute it. The criticism made by Dudley North, David Hume, and John
Locke eroded much of mercantilism and because of which it uncertainly lost its favour during the 18th century. In the year 1969, John Locke made an
agreement that prices differ in proportion to the quantity of money. The second treatise made by John Locke also pointed out towards the heart of the
anti–mercantilist, the critique was that "the wealth of the world is not fixed, but is created by human labor'' (represented by John Locke in his
unformed labor ... Show more content on Helpwriting.net ...
Adam Smith noted at the core of the mercantile system was the, "popular folly of confusing wealth with money," bullion was just same as other any
commodity, so there was no reason to give it any special treatment. . More recently, scholars have discounted the accuracy of this critique. They
believe Mun and Misselden were not making this mistake in the 1620s, and point to their followers Josiah Child and Charles Davenant, who, in 1699,
wrote: "Gold and Silver are indeed the Measure of Trade, but that the Spring and Original of it, in all nations is the Natural or Artificial Product of the
Country; that is to say, what this Land or what this Labour and Industry Produces." The critique that mercantilism was a form of rent–seeking has also
seen criticism, as scholars such Jacob Viner in the 1930s point out that merchant mercantilists such as Mun understood that they would not gain by
higher prices for English wares abroad.
The first school to completely reject mercantilism was the physiocrats, who developed their theories in France. Their theories also had several
important problems, and the replacement of mercantilism did not come until Adam Smith published The Wealth of Nations in 1776. This book outlines
the basics of what is today known as classical economics. Smith spends a considerable portion of the book rebutting the arguments of the mercantilists,
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Difference Between Neo Classical Economy And Neoclassical...
INTRODUCTION TO POLITICAL ECONOMY
SUBMITTED BY:–
DIVYA MISHRA(ROLL NO:– 03)
SOCIAL INNOVATIONS AND ENTREPRENEURSHIP (M.A 1ST YEAR) 1ST SEM
SUBMITTED TO: – Dr.SRI KRISHNA SUDHIR PATOJU SIR
Q–1 Difference between classical political economy and neo classical economy
Ans– The school ofclassical economics came into existence around 1750 and remained till 1800's.The book titled "wealth of the nations" written by
adam smith in 1776 was beginning period of classical economics that ended with "marginalized revolution"and thus neoclassical economics developed.
Neoclassical economics was just an extension of classical economics but the fundamental ... Show more content on Helpwriting.net ...
He was the first economist to deal with economic problems in a systematic manner. In this book he emphasizes importance of labor as source of
wealth of a nation which can be increased by division of labor .Division of labor necessitates exchange. So it leads to discussion of money as a means
to exchange.He discusses some problems like wages,profits and rent after discussing the problems of value and price.
Division of labour–Unlike psysiocrats who regarded only land as the productive factor and agriculture as source of all wealth Adam smith regarded
labor as the wealth of the nation .He argued that division of labour will increase productivity hence will increase the wealth of the nation.According to
Adam smith "division of labour is limited mainly by size of market". That is only if there is a wide demand of goods ,it will be produced on a large
scale and there will be lots of scope for division of labour
Value–According to smith there are two kinds of values value in–use and value in– exchange.The first one expresses utility of a particular object and
the second power of purchasing other

What Does The Label Has Changed Over The Past Decades?
I.INTRODUCTION Recent decades have witnessed an irresistible trend of globalization. Declining barriers to the free flow of factors of
production combined with technological and communication advances have enabled the production process to be "fragmented". It is almost
impossible to define clearly where a manufactured product is made in the global market nowadays (Xing and Detert, 2010). So what does the label
"Made in" mean to consumers today? The aim of this essay is to illustrate how the meaning of the "Made in" label has changed over the past decades
because of the fragmentation of production activities. Therefore, we have to first look at what this label meant to consumers in the past and will then
go on explore why it is hard for... Show more content on Helpwriting.net ...
Because of the barriers to the free flow of factors of production and the relatively poor transportation and communication facilities, the manufacturing
activities were limited within the national border so that a product was generally designed, manufactured and assembled in the home markets then
exported to overseas markets. For this reason, the "Made in" label told consumers more than just the manufacturing country half a century ago. It also
contained messages about its brand origin, designing country, source of parts and components, etc. III.WHY IS IT HARD TO DEFINE CLEARLY
WHERE A MANUFACTURED PRODUCT IS MADE IN THE GLOBAL MARKET NOWADAYS? Unlike half a century ago, due to the increasing
degree of international production fragmentation, the cross–border dispersion of component production/assembly within vertically integrated
production processes, with each country specialising in a particular stage of the production sequence (Athukorala and Yamashita, 2006), a product
actually comprises joint efforts from various countries. 1.THE CASE OF THE IPHONE Let 's take the iPhone, one of the most popular products of
Apple, as an example. Apart from its software and product design, the production of iPhones primarily takes place outside the US. All the major iPhone
components produced by companies

The Neoliberalism Phase Of Globalization
The Neoliberalism phase of globalization that has been going on from the 1970s until present day took place after the Imperialism juncture and the
Keynesian stage; which lasted from the 1820s through the 1920s and the 1930s through the 1960s, respectively. The stage of globalization that is
taking place in our daily lives now, is mainly to benefit from economies of scale, exploit cheap labor, respond to the increasingly global competition,
benefit from low wages, and take advantage from reduced taxes and regulations by moving into developing countries where there are cheap
subcontractors rather than manufacturing in developed countries where the cost of production is very high and costly, in other words they went global
to find financial gain. Unlike, the Imperialism and the Keynesian phases which were mainly to benefit from declining transport costs, gain access to
new and foreign markets, and to compensate for inadequate domestic demand (selling their product in a nation where the demand for a certain product
is higher than the demand in the origin country). Nike, a transnational corporation located in Oregon; the leading supplier and developer of athletic
shoes and apparel goods; with $27.04 billion USD in sales revenue for 2014 (http://www.forbes.com/companies/nike/) in contrast to Adidas, which has
a sales revenue of $19.24 billion USD in 2014(http://www.forbes.com/companies/adidas/); experienced an explosive growth since the 1970s, the
industry has globalized widely

Adam Smith : An Era Of Classical Political Economy
Renowned as the father of "classical political economy", Adam Smith (1723–1790) has challenged many previous political–economic assumptions,
notably the Mercantilist points of view, to prosper and strengthen a state. In his most influential work Wealth of Nations (1779) and various other
works of his, he has put forward his arguments, given a critique of their ideas, and formulated theories of how the market and trade should instead be.
This essay will show in which ways Adam Smith, as a free economy capitalist, has transformed the world into an era of classical Political Economy
from mercantilism. It will also show how his ideas have sparked economic liberalism by influencing other later thinkers such as David Ricardo. It will
as well demonstrate how Adam Smith is crucial in the contribution to classical political economy with a particular focus on his work Wealth of
Nations. First of all, as a proponent of free domestic trade, Adam Smith has opposed the Mercantilist view that domestic trade simply re–distributes
wealth. Smith also illustrates that trade is mutually beneficial between sellers and buyers. From the perspective of mercantilism, "Domestic trade,
which circulated money and commodities within a nation, was regarded as advantageous to private interests, but not to the nation as a whole, because
it did nothing to augment the total amount of wealth" (Hamowy, 2008, p.327). On the contrary, Smith asserts that free (domestic) trade is beneficial
for both

Thomas Malthus And John Stuart Mill Summary
The issue of sustainability is one of the most fundamental and important subjects in economics. Thomas Malthus' bleak evaluation of humanity's
prospects in the face of overpopulation heralded a new age in economics where pessimism became the undisputed ruler of discourse. John Stuart Mill's
efforts to banish this pervasive gloom by appealing to the capabilities and intelligence of his fellow men is both inspiring and devastatingly effective. In
a broader context, the struggle between Thomas Malthus and John Stuart Mill cannot be viewed as merely a peripheral debate on a singular issue; it is
a battle for the very soul of economic analysis. Before delving into a comparative analysis of these two brilliant thinkers, it is essential to provide an
overview of their differing theories of human nature and to examine the contexts that shaped their scholarship.
Thomas Malthus lived in a society that venerated population growth as the ultimate source of prosperity and harmony. Contemporaries of Malthus, such
as clergyman William Paley, argued that the aggregate amount of 'happiness' in a society is almost exactly proportional to the size of its populace. It
therefore comes as no surprise that the noblemen, politicians, and theologians of Malthus' time were greatly distressed by sensational claims that
England's population was in severe decline. The hysteria of this concern was neatly encapsulated by Paley, who unambiguously asserted that a
contraction of the population is

The Political Economy Of Communication
The political economy of communication is using political economy approach to analyse the media and communication. Therefore, before discuss the
political economy of communication we need to figure out what is political economy and what is communication. The definition of political economy
is not simple. This essay uses the definitions given by Vincent Mosco and explores its origin in Greek and inspiration from the ClassicalPolitical
Economy. Apart from the Classical Political Economy, this essay also describes other forms of this approach, such as Critical Political Economy and
Neoclassical Political Economy. Latter the characteristics of political economy study are also discussed based on Vincent Mosco's work in the 1990s.
The part of communication starts by defining the concept of communication in a political–economic way. To understand deeply the political economy
of communication, it is necessary compare it with culture studies, so this part also explains the similarities and differences between this two studies.
Finally the public television is used as an example to describe the peculiarities of the media and the political economy of the media.
What is political economy?
At the beginning, the political economy has is origin in Greek. The word "economics" is composed of "oikos" and "noms" which mean "house" and
"law" (Mosco, 2009). Therefore, "economics" is the management of the household (Mosco, 2009). "Political" has its origin of "polos" which means
city–state

Of Barry Hardin's 'Poverty Breeds' Overpopulation?
discuss the lifeboat problem with the population because the poorer countries and growing very quickly, where the wealthier countries have a much
smaller population rate. This is something that the spaceship metaphor does not consider because the population is growing and it is not accounted
for. This is what Hardin describes as the "Tragedy of the Commons." Not everyone will put in the commitment that you put in in. Hardin relates this
to a cow pasture because a farmer will take care of the cow and land, but if it opens to everyone than not everyone will share the same responsibility
and dedication. (Hardin). The problem with the spaceship is that everything is regarded as commons, so it gets destroyed and polluted. The tragedy of
the commons describes the problem with overpopulation and hunger and how metaphorically the lifeboat explains it.
Barry Commoner in "Poverty Breeds 'Overpopulation'" begins his argument by stating that the population is clearly growing, but the resources we have
are limited. Demographic transition is a characteristic found in Western states. If there is an increase in the standard of living than a population balance
will occur, but this is not the case because of the death rates, birth rates, and infant mortality rates in poorer countries. These countries cannot afford
education and new technologies that will help with this problem such as birth control. However, the increased standard of living is the first stage of the
demographic transition.

The Choice: A Fable of Free Trade and Protectionism
Book Review: The Choice: A Fable of Free Trade and Protectionism
In the acclaimed novel, The Choice: A Fable of Free Trade and Protectionism, author Russell Roberts, an economist and writer, tells a fictional story that
enlightens readers to the wonders of the economic system. Russell provides an insightful, thought provoking story that illustrates protectionism and free
trade, while making the concepts and arguments easy to comprehend. The story is told through dialogue with two main characters, David Ricardo, an
18th and 19th century economist and Ed Johnson, a CEO for a company that produces televisions. Johnson's company is facing competition from an
overseas Japanese company. Through the use of these characters, Russell shows how ... Show more content on Helpwriting.net ...
To do this, Johnson enlists a local politician, Frank Bates. This soon results in the Congressman propagating for protectionism in hopes that it will help
him get closer in the race to become United States President. Ricardo sees the problems unfolding and will step in to intervene. To illustrate the concept
to Johnson, Ricardo takes him into the future showing him two case scenarios: an America that operates on free trade, and an America that attempts to
be completely self–sufficient. It is through this journey that Ricardo is able to change Johnson's mind. Roberts does a fine job illustrating and
convincing the reader that free trade is the way to be successful. For this reason, the reader will begin to side with Ricardo and his ideas, and agree
with the things that he purposes. In turn, the reader will also view Frank Bates as the bad guy of sorts and disagree with the things that he is
promoting. Roberts could have improved his argument by researching free trade even more, and including points such as social responsibility. While it
is important to secure the well–being of our nation, we must also be aware of the world population and their quality of life. Roberts's argument and
stance is made very clear. It is quite evident that he is for free trade through his depiction of it in the tale. While, some may argue that the author is too
biased, it cannot be said that Roberts was not convincing and persuasive. In the

To What Extent Do Professor 's Ariely 's Ideas Help Us...
Business Assignment
Part A.
To what extent do Professor 's Ariely 's ideas help us evaluate the effectiveness of Jamie Oliver 's management approach?
Professor 's Ariely 's speech on the effects of management does, to a certain extent help us evaluate the effectiveness of Jamie Oliver 's hands–on
management approach. As a manager, Jamie Oliver would take a personal interest in his students; providing them with training, support (paying for their
transport if necessary) and visiting their homes. This allowed Jamie to develop trust and respect with his students and in return, the students established
a trust with him. If a manager is attentive and acknowledges their efforts, employees are more likely to uphold their motivation. One example that was
presented by Professor Ariely demonstrated this idea that if people 's endeavours are recognised, then they will work for longer. The experiment
whereby people matched pairs of letters in three different conditions showed results that backed up this hypothesis. In the first condition, they wrote
their name, completed the worksheet and showed it to the experimenter, who then scanned it and put it in the pile. The second condition, people did not
write their name, completed the worksheet, gave it to the experimenter and without looking at it, placed it in the pile. The final condition, the
experimenter simply put the completed worksheet in the shredder. In the first condition where the work was acknowledged–people worked for

The Philosophy of International and Free Trade
A trade liberalization process on a global scale has started since the post WWII period, with most countries pursuing the philosophy of international and
national free trade. Even though the complete free trade has not been made possible yet, and maybe it will never be, numerous agreements have been
made in the name of trade liberalization. They allowed the trade between different countries and within the same country to a certain degree of
liberalization where several new business practices can be implemented.
The two highest expressions of this trade liberalization are off shoring and outsourcing. Moreover these two practices are more and more often applied
together.
However, it is crucial to clearly distinct the differences between off shoring and outsourcing. It is common mistake to consider them as synonyms. Off
shoring can occur without out sourcing necessarily taking place, on the other hand the existence of out sourcing does not mean off shoring is happing
as well.
Definitions:
Off shoring refers to the relocation by a company of a business process, either operational or supporting ones, from one country to a different one.
However recently it is commonly used in relation to the practice of relocation to developing countries, with lower wages. It can consist of
administrative or technical processes, such as accounting and manufacturing. On the other hand some business services, such as legal services, tend to
be out sourced instead of off shore.
Out sourcing

David Ricardo : Comparative Advantage
David Ricardo; Comparative Advantage
David Ricardo, a British political economist was born on April 18, 1772 in London, England. He was the third child of seventeen in a Sephardic
Jewish family who originated from Portugal and had recently emigrated from the Dutch Republic. At the age of fourteen, Ricardo began to work with
his father, Abraham Ricardo, who was a famous stockbroker. When Ricardo was twenty–one years of age, he ran off and got married with Priscilla
Anne Wilkinson, a Quaker, and became a Christian Unitarian despite his fathers wishes. Ricardo's religious difference from his family resulted in
his disownment by his father, and his mother's refusal to speak to him again, which prompted him to become independent. After Ricardo's separation
from his family, he began his own successful business as a broker with the reinforcement of Lubbock 's and Forster, a renowned banking house of it's
time. A large portion of Ricardo's fortune was made as a result of his conjecture on the result of the Battle of Waterloo. It wasn't until Ricardo was at
the age of 37 that he wrote his first economics article. His article was widely accepted in England, and became the basis of orthodox economic ideals
in the modern western world, where the government is perceived to have an established role in the outcome of a nation's economy. Ricardo was an
abolitionist. He spoke at the meeting of the Court of the East India Company in March of 1823. Ricardo also adamantly opposed

Pros And Cons Of Mercantilism Criticism
Mercantilism – Criticisms
Criticisms
Adam Smith and David Hume were the founding fathers of anti–mercantilist thought. A number of scholars found important flaws with mercantilism
long before Adam Smith developed an ideology that could fully replace it. Critics like Hume, Dudley North, and John Locke undermined much of
mercantilism, and it steadily lost favor during the 18th century.
In 1690, John Locke argued that prices vary in proportion to the quantity of money. Locke's Second Treatise also points towards the heart of the
anti–mercantilist critique: that the wealth of the world is not fixed, but is created by human labor (represented embryonically by Locke's labor theory
of value). Mercantilists failed to understand the notions of absolute advantage and comparative advantage (although this idea was only fully fleshed out
in 1817 by David Ricardo) and the benefits of trade.
For instance, suppose Portugal was a more efficient producer of wine than England, yet in England cloth could be produced more efficiently than it
could in Portugal. Thus if Portugal specialized in wine and England in cloth, both states would end up better off if they traded. This is an example of
the reciprocal benefits of trade due to a comparative advantage. In modern economic theory, trade is not a zero–sum game of cutthroat competition
because both sides can benefit.
Hume famously noted the impossibility of the mercantilists' goal of a constant positive balance of trade. As bullion flowed into one

David Malhus's Theory Of David Ricardo And David Baldwin
"Population and poverty are the two major concerns in England back in 18th Century.
England believed their population was declining due to natural disaster and lack of resources. Thomas Malthus and David Ricardo were born in the
same time frame when the England is in the midst of hardship.
The young Malthus thought the society of the population was caught in a hopeless trap.
At the same time, some people thought in totally different way included David Ricardo which was a successful stock trader. In his opinion, the
society is like an escalator, some people at the upper classes effortlessly, some people's hard works might not be paid off, hence, unable to improve
their social status. This theory is different with Adam Smith where people ... Show more content on Helpwriting.net ...
Ricardo saw the conflict of the society and only landlord will gain the benefits and their interests always against with the society.
Due to the different background and career between David Ricardo and Malthus, they were treated differently. Malthus thought the basic problem of
the society is because there were so many people. Malthus was described as an old–thinker but his essay on population is a great contribution to
economy. Meanwhile, Ricardo was regarded as a strong supporter of speech freedom and assembly but he strongly opposed Parliament
Corruption and Catholic Prosecution. People might not understand what Ricardo's idea but they support him due to his popularity in economics and
political area. Ricardo and
Malthus were good friends but this doesn't stop them to search for the truth as they both, In 1817, David Ricardo has published Principles of Political
Economy. The idea is to totally different with Adam Smith's optimistic views toward capitalist. David Ricardo feel capitalist only accumulate. In
Ricardo's point of view, the world is mainly focus on the economic activities. One of the highlight in David Ricardo's idea is the difference of profits
earned by the landlord whom with different level of fertility of

Involuntary Unemployment And Its Effects On The Economy
Contrary to what some economists believe, involuntary unemployment is a very real and continuous presence in the economy, both past and present. In
the United States, the unemployment rate measures the number of people actively looking for a job as a percentage of the labour force. According to
the Bureau of Labor Statistics (BLS), the current unemployment rate is at 5.4 percent, down from the high unemployment levels of a lingering 10
percent during the most recent recession less than six years ago. This rate fails to include other failures in reaching full employment, such as "the
number of persons employed part time for economic reasons (sometimes referred to as involuntary part–time workers) ... These individuals, who would
have preferred full–time employment, were working part time because their hours had been cut back or because they were unable to find a full–time
job" (Taborda, BLS). Involuntary unemployment is a common occurrence in capitalism that happens when, rather than simply not choosing to work at
the set wage, a person is willing to work at the prevailing wage and yet remains unemployed. What many economists have sought and continue to seek
to find out is the cause of high unemployment levels, whether that be what motivates humans to act in the economy or the nature of the system of
capitalism.
Some modern economists praise our current economic system of capitalism and suggest that it is not the cause of prolonged recessions while others
condemn its

Adam Smith 's The Wealth Of Nations
Adam Smith's 'The Wealth of Nations' in 1776 is usually considered to mark the beginning of classical economics (Smith, 1776). He was the first to
articulate that international trade was not a zero–sum game and it was counterproductive to have a single–minded reliance on exports. He proposed the
theory that a country should specialize in manufacturing goods that it can make with the fewest resources, therefore giving it an advantage in the
production of that good. This allows for global out to be maximized, thereby with free trade each country would end up with a greater number of goods
than before.
His notion was that wealth of nation is determined by its labor and not by the amount of gold. In addition, he stated that when two nations participate
in free trade there is an increase in total wealth as both nations see a profit in exchange. Widely known as the "father of modern economics", Adam
Smith contributed a significant amount of knowledge regarding the political economy. It emphasized that markets operate best without the interference
of the government. Classical economists observed that markets regulate themselves when free of coercion. He referred to the markets self–regulating
nature, when buyers are able to choose between various suppliers and companies who do not successfully compete are allowed to fail, as a
metaphorical "invisible hand", which moves markets towards natural equilibrium. During the industrial revolution, Britain embraced free trade and
Smith's

To begin with, the freedom of trade usually means lack of...
To begin with, the freedom of trade usually means lack of the high export and import duties, and also not monetary restrictions on trade, for example,
quotas of import of certain goods and subsidies for local producers of certain goods. Supporters of free trade are Liberal parties and currents; many
left–wing parties and movements concern to opponents (socialists and communists), defenders of human rights and environment, and also labor unions.
The mercantilism which has arisen in Europe in the XVI century was one of early theories of trade. In the XVIII century the protectionism was
subjected to sharp criticism in Adam Smith's works which doctrine can be considered as a theoretical basis of free trade. In the XIX century Smith's
views ... Show more content on Helpwriting.net ...
Consequently, one of the most significant events in Britain's nineteenth–century economic history was the repeal of the Corn Laws and its move
toward free trade in 1846. The Corn Laws were trade laws designed to protect cereal producers in the Great Britain and Ireland against competition
from less expensive foreign imports between 1815 and 1846. To ensure that British landowners reaped all the financial profits from farming, the corn
laws imposed steep import duties, making it too expensive for anyone to import grain from other countries, even when the people of Great Britain
needed the food (as in times of famine). The decisive moment in the repeal of the Corn Laws arrived when Prime Minister Robert Peel, who was
quite sure that without repeal Britain might have experienced "a revolution similar to that seen in France in 1848." and a third of his fellow
conservative Members of Parliament (Peelites) who had historically been protectionist reversed their stance and embraced free trade. It is this change
of mind and vote that has been the subject of much study in political science and economic history. Non–Peelite Conservatives represented districts
with "hard–core" protectionist interests and less diversification into nonagricultural ventures such as David Ricardo and Robert Torrens.
Scholars have advanced several explanations to resolve the puzzle of why Peel made the seemingly irrational decision to sacrifice his government to
repeal the Corn Laws, a policy which

The Law Of The Corn Laws
Another way in which a comparison of the two thinkers can be given with respect to the Corn Laws is through their positioning on the issue of Say's
Law. To introduce this concept, Jean–Baptiste Say developed the Law of Markets, which is commonly referred to as Say's Law, in his A Treatise on
Political Economy. He maintains that in order to consume, one must provide supplies for another's demand in order to earn a unit of account to
consume goods, meaning a consumer must also be a producer (Say, I.XV.133). Therefore, the economy is a constant cycle of production, proving that
supply creates its own demand. Because of this implication, Say's Law can be viewed in relation to the Corn Laws as the law implies both that an
economy will equilibrate without a need for government intervention and that free trade is non–distortionary. Knowing this, it becomes evident that the
law was supported by Ricardo, albeit implicitly, and explicitly rejected by Malthus. This section will therefore more indepthly move through the two
thinker's opinions on the law to prove their stance on the greater issue of the Corn Laws.
Malthus disagrees with Say's Law, as it oversimplifies the nuance of the economy through its failure to account for the insufficiency of demand coupled
with overproduction. The main argument about the insufficiency of demand is brought about by the expenditure of the different social classes. The
insufficiency of demand he notes makes up his glut theory. For Malthus,

The Change Of The East India Company Monopoly
In the four months that he was in England, Say was confronted on the things he saw, the things he admired and those that he deplored. Still in England,
Say was able to make crucial friendship networks with well–known economist such as, David Ricardo, Jeremy Bethem, James Mill and Thomas
Malthus. At the time, he visited Glasgow; he got a chance to sit on the professorial chair of Adam Smith, and this marked an emotional period in his
life. Without a doubt, his perspective of England could not go without observation and criticism of his fresh acquaintances, particularly their view on
the East India Company monopoly, as well as, the agricultural protectionism of England via the Corn Laws. However, both of the problem eventually
came to an ... Show more content on Helpwriting.net ...
It would help them create the basis in which they would get to criticize the decisions of the state. Say gave lectures at the conservatory for about ten
years. It was in the acceptance that he coexisted in a government that was doubtful of academic critics. During this time, some of the people who talked
about things that the state was not pleased would have their course closed.
Finally, prior to his death, about a year or less, Say was given a political economic chair at the France College. Say was for the thought that, his
discipline should have the name "social economy," as economic policies, and economic laws impacted the society as a whole.
Even though he was not feeling well in his last years of life, Say was still productive and was still writing, overseeing and lecturing the fifth version of
his famous book 'Treatise ' which was published in 1826. Say 's wife died in 1830, which led to Say' being depressed and lonely. In 1832, weeks later
after his opening lecture at the France College for the opening term, Say died at the age of sixty–five.
Say got credited with more than what came to get known as Say 's Law of Markets. Say was neither the first person nor one of the first people to
introduce unique economic concepts into the paradigm of the classical school. Examples of such concepts are entrepreneur, services, and utility. Since
he was fluent in the English language, Say

Difference Between Classical And Neo Classical Political...
I.ANSWER : SHORT ESSAY 1
DISTINGUISH BETWEEN CLASSICAL POLITICAL ECONOMY AND NEO–CLASSICAL ECONOMICS:–
Neo–Classical Economics Classical Political Economy
1.Neo–Classical Economics is a static process 1.Classical Political Economy is a dynamic process .
2.Neo–classical economy deals with the 2.Classical political economy deals with Short term aspects such as pricing ,resource the long term aspects
such as growth or allocation ,etc. development .
3.Price determination : demand and supply. 3.Unlimited resources. Classical political economy tells us how to use resources.
4.Concerned ... Show more content on Helpwriting.net ...
politics, history are relevant here power structure. The above are the basic differences between neo–classical economics and classical political economy.
Apart from this, as we know that our economic history is consisted of many revolutions as well as paradigm shifts.
If we talk about the 20th century, the shifting of classical economics to neo classical economics can brought numerous changes in the same way in
which people thought about the wealth. The main appealed shift by neo classical economics was the idea of value as a function of perception , a
sharp departure from the classical theory of value as cost of production. So many differences can be attributed to this shift, between classical and
neo–classical economics.
The further differences are as follows :
5.UTILITY– Now, if we talk in the context of Utility, then,
In classical economy, utility in a prominent way, is absent in the theories of growth value and labor. Equilibrium here, in the classical school, was the
function of interest wages and normal wages rather than the demand and

Summary Of Adam Smith And David Ricardo
Adam Smith and Principles of Economics by David Ricardo represented the formulation of international trade theories. To Adam Smith it was the
absolute advantage of one country. Also, the labor side in Smith opinion that reduces the cost of production, and that would ensure competitiveness in
the international markets. David Ricardo expressed basic assumptions of the trade theory. Free trade theory, as opposed to Mercantilists trade
protection, was supported by Adam Smith and David Ricardo. For Smith and Ricardo free was mechanism to increase the productive efficiency at
global level. Ricardo's cost calculation was based on labor hours factor on production. In Ricardo model, there were two commodities and production of
that were subjected to constant returns to scale. Comparative advantage was considered to increase and befit from trade. Ricardo's indicate specialization
... Show more content on Helpwriting.net ...
When demand elasticity for the same good is different in different countries, there is a possibility of subsidized exporting of goods. There is one
more possibility that there are some countries that are historically above others and have a cost advantage of producing some goods, and they can
offer products at lower price than others. In such as a situation, countries will provide subsidies to industries whose cost of production is high to enable
them to obtain the benefit of scale economies. This will pave ways for advanced countries to follow aggressive strategic trade. Sunanda Sen wrote, It
was generally recognized that the "vagaries of history" rather than resources determine what a country produces and exports. Thus the role of "history
and accident" were both considered crucial in determining the location of an industry in the world map (Krugman 1994)(Sunanda Sen,2010).
Economists suggested that the government comes forward to shift resources from sunset industries to sunrise industry to produce high–value

The Pros And Cons Of The Corn Laws: Thomas Malthus
The Corn Laws were a series of policies which aimed to stabilize the price of corn by imposing some tariffs and restrictions on corn imports. For
example, they prohibited the importation of wheat when the home price fell below 80 shillings a quarter. The Parliament discussed them between the
1815 and 1846. The issue interested all the social classes, as corn was the principal food of the labouring class and farm animals, and its price
variations concerned landlords' rents. The heated debate involved several economists and statesmen, who argued on the benefits and disadvantages of
the policies from different perspectives. One of its most fervid supporter was Thomas Malthus, who gave a particular contribution on the Corn Laws
debate between 1814... Show more content on Helpwriting.net ...
An incentive on corn export would have increased just the nominal price of corn, leading to an equivalent increase in the wages and in the prices of
all other commodities. However, he believed that it is only through variations in the real price of corn that it was possible to encourage economic
production. Malthus (1814) opposed the Adam Smith's argument, stating that, since corn is conditioned by the general principles of demand and
supply, like other commodities, "it is possible to encourage cultivation by Corn Laws" (p.5). Malthus wrote that workers do not spend all their wages
in corn or grain, and so wages do not adjust exactly in proportion to corn price variations in presence of free trade, but at a slower rate. Because of that,
a tariff or a restriction on the importation of grain would have increased the real price of the corn, and so given an economic incentive to expand and
invest in agricultural

The Choice Essay
Questions :
1)How does Ricardo explain Comparative Advantage?
2)What happened to EdВґs grandchild before trade?
3)What happened to EdВґs grandchild after trade?
Answers:
1)Ricardo explains Comparative Advantage in "The Choice" as followed:
Dave gives "The Theory of Comparative Advantage" a different name and calls it "The Roundabout Way to Wealth".(p.10) He says that this theory
deals with the idea that even a nation which is relatively poor at doing everything, still do some things relatively well. "And a nation that is really good
at many things should still specialize in producing some items and import the rest".(p.10) Time is the ultimate scarce resource. Investing time in doing
something means having less time in doing ... Show more content on Helpwriting.net ...
"There was no big–screen television or voice–controlled computer. Just a math book, a pad of yellow paper." (p.109) . Justin also wears thick glasses.
Justin has an eye problem which couldn't be healed in a world without free trade. But as Dave tells the reader, Justin is only wearing the glasses
because the "people Upstairs" made this happen. Justin normally doesn't wear glasses at all, he "would have lost his eyesight entirely".(p.110) The
company Merck will only be able to develop the medicine Justin needed in a world of free trade. Otherwise America would be too busy by doing
everything for itself and there wouldn't be "enough people, machines, and land to go around to make everything as cheaply as could be made under
free trade."(p47)
3)In a world with trade is Justin seen doing his homework "in front of a big–screen television"(p.25) There is also a computer on a nearby desk.
Everything is state of the art. But Justin still has problems with his eyes. That's why his dad says that Justin had to watch his eyes and is not
allowed to watch television very long. Ed is concerned about Justins eyes. Dave tells him, that it isn't that worse and that Justin takes a special
medicine which will cure him. But America is only able to get this medicine by free trade. America can only develop further if free trade is allowed.
And every nation can only be better off and becoming richer if it doesn't have trade

The Scarcity Of A Resource
Free markets are defined as "A market (for a particular commodity, etc.) in which prices are not fixed or regulated; (chiefly with the) an economic
system in which prices are determined by unrestricted competition between privately owned businesses" (Oxford English Dictionary, 2014).
Classical economists believed that free markets; along with limited government, low taxes and protection of property rights were important to
create a prosperous economy. Genetski, 2011, names some benefits of an economy making use of the free market system. Although complex, free
markets use resources efficiently. The scarcity of a resource is determined by the price in which an individual will have to pay for it. For example,
if a good or service is more expensive, then "a high price signals a product or resource that is relatively scarce compared to its demand" (Genetski,
2011, p. 14). The price that an individual is willing to pay for a particular item also signals the choices we make to the producers. This in turn, allows
producers to know which products to make or services to offer, how to manufacturer the product and even whether to use foreign or domestic
resources. Genetski, (2011), says "in a free market, hard–working conscientious workers that contribute to creating more value tend to get paid more
than lazy, less conscientious workers" (p. 15). This will provide an incentive for workers to be more productive. There has been and will always be
objections to using a free–market system;

Mercantilism: David Ricardo
David Ricardo
During the seventeenth and eighteenth centuries, mercantilism was at the forefront of economic thought. This economic theory advocated a surplus of
exports to increase the amount of money held by a nation. Mercantilism also called for a large poor population, strict government regulations and high
tariffs on imported goods. These type of policies fueled anti–trade results and international conflicts, catapulting thinkers like Adam Smith, Thomas
Malthus and David Ricardo onto the economic scene. These new, progressive and radical economists turned Europe 's traditional mercantilist views
upside down. Not only did these men recreate economics in their time, these thinkers eternally changed the progression of economic thought far into
the future. A new era was created which shaped the path of American and European countries alike towards a more progressive, trade–focused future.
Classical economics was developed during the eighteenth and nineteenth centuries by a primary group of progressive economic thinkers including
Adam Smith, Thomas Malthus, John Mill and David Ricardo, among others. This period of economic thinking focused mainly on economic growth
through trade. Adam Smith, the noted Scottish economist famous for his "invisible hand" theory, is widely accepted as the father of classical
economists with his work The Wealth of Nations written in 1776. This book emphasized the importance of trade instead of the previously highlighted
gold

External Economies Of Scale Occur
External economies of scale occur when the cost per unit depend on the size of the industry but not necessarily on the size of any one firm(Krugman et
al,2015:179).It also consists of potential reduction of average cost associated with higher level of productivity. Often differences between countries and
economies of creating the need to trade, as thus economies of scale make it advantageous for each country to specialize in the production of an only
limited range of goods and services (Krugman et al,2015).In understanding the significance of economies of scale ,Adam smith postulates that each
country could produce one or more commodities at a lower cost than its trading partners .It then follows that each country will benefit from
specialization, this pattern of trade often reflect a created comparative advantage meaning that a country can produce at a lower cost than the other
country (Theo S et al,2009).A large of production is more efficient, the cost per unit of output falls, while the industry increases production as a result it
encourages trade amongst countries.
Discuss the Role of external economies
External economies of scale occur when the cost per unit depends on the size of the industry but not necessarily the size of an individual firm
(Krugman et al, 2015) they are most likely to arise when firms operate in the same region. External Economies of scale often lead to industry cluster,
that is, Group of similar and related firms in a defined geographic area

Why The United States Can Make Any Toys With Greater...
The United States can make certain toys with greater productive efficiency than can China. Yet we import those toys from China. However the main
reason why the U.S. has become so dependent upon China for goods is that production costs are less in China than the U.S. Reduced production costs
are so attractive to companies the benefits of low–cost production are passed on to customers with lower prices on goods the relationships U.S.
companies have with China are important because of the variety of products available from China. Adam Smith born in 1723 was a Scottish political
economist and philosopher famous by his influential book The Wealth of Nations. Smith proposed in his book that a nation's wealth should be judged
not by this metric but by the total of its production and commerce. Smith wrote in his book that that productive labor should be made even more
productive by deepening the division of labor. Smith describes the evolution through feudalism into a stage of society requiring new institutions, such
as market–determined rather than guild–determined wages and free rather than government–constrained enterprise. If a foreign country can SUPPLY us
with a commodity cheaper than we ourselves can make it, better buy it of them with some part of the produce of our own industry, employed in a way
in which we have some advantage. Relationships with China have proved profitable for some major U.S. corporations. One of the reasons that the U.S.
has become so dependent

Philosophies Of Adam Smith
The philosophies of Adam Smith and David Ricardo
Adam Smith is considered the father of modern economics. He defined economics as 'the study of the nature and causes of nations' wealth or simply
the study of wealth.
The central point in Smith's definition is wealth creation. Implicitly, Smith identified wealth with welfare. He assumed that the wealthier a nation, the
happier are its citizens. Thus, it is important to find out, how a nation can be wealthy. Adam Smith's definition is a wealth centered definition of
economics.
Main Characteristics of Wealth Definitions
The exaggerated emphasis on wealth: these wealth centered definitions gave too much importance to the creation of wealth in an economy. The
classical economists like Adam Smith, J.S.Mill, J.B.Say, and others believed that economic prosperity of any nation depends only on the accumulation
of wealth. Inquiry into the creation of Wealth: These definitions show that Economics also deals with an inquiry into the causes behind the creation of
wealth.
A Study on the nature of wealth: It has indicated that wealth of a nation includes only material goods(e.g. different manufactured items.). Non–material
goods were not included goods were not included.
Adam Smith's Theory of Absolute Cost Difference
Adam Smith's theory of absolute cost difference is the oldest theory of international trade. According to Adam Smith, the basis of international trade is
the territorial division of labor and specialization. Adam Smith's

An Inquiry into the Wealth of Nations by Adam Smith Essay
40 years after the publication of Adam Smith's "An Inquiry into the Wealth of Nations" during the early 19th century, the rivalry between the Capitalists
and the Landlords was at its peak. Thomas Robert Malthus had lived through two conflicts one the Industrial Revolution, and the Control of landowners
over Parliament. Malthus wrote an essay on the theory of population where he challenged England's poor laws. On the other hand David Ricardo
believed that the Malthusian position regarding the Corn Laws was wrong as Ricardo believed that countries don't benefit from protectionist policies
like the Corn Laws; however, they benefit from trade and globalization. In a protectionist society, profits fall while rents rise; to Ricardo this was a...
Show more content on Helpwriting.net ...
72) Malthus was pro Corn Laws and wanted to ban their imports as he believed that the economy needed to be protected and self–sufficient. Malthus
sided with the landlord and he believed that if price of food increased then more people would starve and die which is a good thing for the
economy to protect its natural resources. Malthus is willing to prevent development to achieve stability; he also believed that no social harmony
could come from trade or exchange. On the other hand, Ricardo was against the Corn Laws, he believed that if Country A had a comparative
advantage in a certain product over Country B then Country B should stop producing that product and start importing it from Country A, as
throughout time resources would become depleted and there would be a shift from fertile lands to less fertile lands which would decrease
production; hence efficiency. Ricardo sided with the Capitalists, as he advocated for competition and the incentive to work, Ricardo believed that
trade and exchange would benefit the society as a whole, as the presence of trade would increase profits and decrease rents and cause social harmony.
Neoclassical theory advocates free trade, globalization. Ricardo was similar to Adam Smith in most of their theories; however, Ricardo talked on the
international level, while Smith talked on the domestic level; Smith introduced the term "invisible hand" and stated that there was a negative

The Pros And Cons Of Classical Economics
1.Classical economics, which claims universality and progress for everyone, is a class biased from start. Reflect on this statement.
Development: It is increasing the standard of living by considering economics is the key function. Every theory of development has functions of
economics. It plays a vital role in social science. It is widely considered as "committed" i.e., serves an interest especially class interest. Economists have
equal important like scientists, because these people concern with important issues like economic growth, employment and development etc.,
Economic theories of development have own way of History, projections, philosophical bias, practice, language and relations. These properties of
theories depend on particular ... Show more content on Helpwriting.net ...
He explained Ricardian theory as arithmetic precession which has ethical and social liberal problems. He said state should protect individual liberty of
citizens by which state can enhance with good property rights and ownership. He supported smith theory of division of labor for efficiency. State is
important but should not over rule the economic realm. State should create legal and political environment to enhance the self interest separate for
market and state.
Conclusion:
He differentiated mercantilist's policies which benefited the elite people like feudal lords and observed merchant–capital classes as agents for
rationality and economic progress. In mercantilism workers are not interested whereas here they become active by creating free market conditions of
production and trade. He emphasized on values and science, as science laws are applicable to economics for growth and development. He neutralizes
and universalizes the class bias form Mercantilism.
Classical economics is varied from Smiths laws of competitive behavior, self interest and rationality of markets by capitalists. It emphasized on
production, trading and scientific innovations in the

The Relationship Between The Division Of Labor And The...
Adam Smith was a famous philosopher and political thinker known for his work The Wealth of Nations that revealed the relationship between the
division of labor and the extent of the market. David Ricardo was also a philosopher, who contributed to economy and politics by writing his study,
entitled On the Principles of the Political Economy. Consequently, both thinkers wanted to explain the pattern of economic specialization under free
trade. However, there were distinctions between them. Thus, this paper intends to explain how Smith understands the relationship between deepening
divisions of labor and the extent of markets, to explore whether Smith is right, and to reveal the distinction in approaches, provided by Smith and
Ricardo.
Smith's Understanding of the Relationship between Divisions of Labor and the Extent of Markets
According to Smith, the relationship between the division of labor and the extent of the market is direct, as the division of labor appears in result of the
human necessity to exchange (Smith 2000). Thus, this interdependence leads to the specialization of production and international trade among nations or
individuals. Adam Smith insists that the scope of the division of labor is preconditioned by the market and human talents that operate there (Smith
2000). One should mention that Smith's vision of market is related to the improvement of infrastructure. Smith regards the division of labor as the list
of advantages, which provide the predisposition to

Essay about David Ricardo & the Comarative and Absolute...
ECO2023
DAVID RICARDO & THE COMARATIVE AND ABSOLUTE ADVANTAGE
David Ricardo was one of those rare people who achieved both tremendous success and lasting fame. After his family disinherited him for marrying
outside his Jewish faith, Ricardo made a fortune as a stockbroker and loan broker. When he died, his estate was worth more than $100 million in
today's dollars. At age twenty–seven, after reading Adam Smith's The Wealth of Nations, Ricardo got excited abouteconomics. He wrote his first
economics article at age thirty–seven and then spent the following fourteen years–his last ones–as a professional economist.
Ricardo first gained notice among economists over the "bullion controversy." In 1809 he wrote that England's inflation ... Show more content on
Helpwriting.net ...
Think again. Poorland's cost of producing wine, although higher than Richland's in terms of hours of labor, is lower in terms of bread. For every
bottle produced, Poorland gives up half of a loaf, while Richland has to give up three loaves to make a bottle of wine. Therefore, Poorland has a
comparative advantage in producing wine. Similarly, for every loaf of bread it produces, Poorland gives up two bottles of wine, but Richland gives up
only a third of a bottle. Therefore, Richland has a comparative advantage in producing bread.
If they exchange wine and bread one for one, Poorland can specialize in producing wine and trading some of it to Richland, and Richland can
specialize in producing bread. Both Richland and Poorland will be better off than if they had not traded. By shifting, say, ten hours of labor out of
producing bread, Poorland gives up the one loaf that this labor could have produced. But the reallocated labor produces two bottles of wine, which
will trade for two loaves of bread. Result: trade nets Poorland one additional loaf of bread. Nor does Poorland's gain come at Richland's expense.
Richland gains also, or else it would not trade. By shifting three hours out of producing wine, Richland cuts wine production by one bottle but
increases bread production by three loaves. It trades two of these loaves for Poorland's two bottles of wine. Richland has

Wealth Of Nations By Adam Smith Summary
trade when a country can produce at a lower opportunity cost. This is related to the rent theory because both involve the advantages of one
"commodity" over the other. They both are produced at the lowest cost possible which means that one has the advantage over the other. Finally, the
best land creates an advantage because it can produce more, and the comparative advantage of producing a commodity a lower price creates a bigger
profit. Overall, Ricardo was different than other political economist even though he began studying economics after reading "The Wealth of Nations" by
Adam Smith. Ricardo is most known for his theory of rent and his theory of comparative advantage. Some of his ideas are still relevant today including
his ... Show more content on Helpwriting.net ...
Productivity was lower until the creation of the division of labor which is why Smith finds it so important. Nonetheless, the division of labor
created economic, social, and behavioral effects. Economically, the division of labor created a larger quantity in a shorter amount of time. It
created more productivity, which overall was better for the economy. Furthermore, this was beneficial to the economy in an industrial way
because it helped create new machinery and ways of completing jobs. However, it is also effected by the market because problems occur when
the market is small (Wealth of Nations, p. 85) Nonetheless, the social and behavioral aspects are effected as well. Smith believes that workers
become "stupid" because they are so accustomed to doing a single job that they cannot do anything else. This effects the social and behavioral
aspects because the workers become inhumane and barely good for anything. They do not know how to interact, and they cannot come up with new
ideas. The concept of the division of labor was a good idea, but there were concerns with it. Another topic found in Smith's division of labor is
"increasing returns to scale" and how the "virtuous cycle of growth" occurs because of the division of labor. Increasing returns to scale relates back
to productivity and how more can be produced with the division of labor. However, if too much is produced than supply will be above demand which in

Comparative Advantages And Disadvantages Of Thailand
Thailand has been the major exporter of agriculture products in the worlds for decades, but they, also, have been gradually industrializing themselves in
recent years. Thailand's international trade has expanded over 600% over the past 20 years. Manufacturing exports hold 86% of the country's total
exports as of September 2014 ("BOI: Thailand Investment Review," 2014). Manufacturing industry nowadays has become one the major factors
encouraging the economy performance of a country and so as Thailand.
Comparative advantages gained by Thailand
Thailand has comparative advantage in producing the manufacture product compared to other countries. Thailand has comparative advantage in
geographical term. Thailand is located at the strategic crossroads of mainland South East Asian region, in which it shares common land border with
four neighbouring countries ((Solidiance, 2014)
.The gain in the amount of investment in manufacturing sector is one of the major contributor toward the shift from the exports of primary products to
exports of manufacture products. (How ... Show more content on Helpwriting.net ...
Labor with lower education level gets a lower wages. Barro found out there is a positive relationship between higher education enrolments and income
inequality (Barro,2000 ). As a result, the lower wages reduce the cost of production and attract manufacturers to produce manufacture products in
Thailand also export them in a bulk quantity to international market.
The comparative advantages have attracted more manufacturers of big companies to produce manufacture their products in Thailand which leads to
the increasing supply of manufactured products. Thus, the surplus of manufacture products increases the export rate of manufacture products and shift
the exports of primary products to exports of manufacture products. (This is kind of a summary for this point)
Outstanding

The Macroeconomic Perspectives of David Ricardo, Karl...
The Macroeconomic Perspectives of David Ricardo, Karl Marx, and John Stuart Mill
ECON 350 19 November 2012
Abstract
The author surveys three influential economists of the Classical era–Ricardo, Marx, and John Stuart Mill–and introduces the reader to their
Macroeconomic perspectives based on some of their more prominent Macroeconomic theories.
David Ricardo
David Ricardo was a Classical Economist who lived from 1772 to 1823. In his professional life he wore many hats: he was a businessman, a financer,
a speculator, and a member of Parliament. But what he is most remembered for is the role that he played in the evolution of economic theory,
alongside of such other greats as John Stuart Mill and ... Show more content on Helpwriting.net ...
This was actually quite a big deal during Ricardo's since Protectionist policies were hindering free trade, which Ricardo was a proponent of as can
be seen from his Law of Comparative Advantage. One of Ricardo's first interactions in the economic dialogue of his time was based around the
Quantity Theory of Money. At the time there was something going on in Britain that would come to be known as the "Bullion Controversy".
Basically, as a result of a potential war the British government temporarily suspended the obligation of the Bank of England to convert its notes into
gold. During this time agricultural prices rose (which some people attributes to poor harvests) and gold prices went up. It is on this second point that
Ricardo chimed in. Ricardo argued that the rise in gold prices was actually the result of inflation. According to him, since the bank wasn't obligated to
exchange their notes for gold they were printing more notes than they had gold to back them. This flood of currency, Ricardo said, was creating an
excess supply which was devaluing the currency and thus causing inflation (Laidler, p. 12).
Karl Marx
Karl Marx is probably best known for the work that he co–authored with Fredrick Engels entitled "The Communist Manifesto" and also for his work
entitled "Capital." He is also arguably one of the most well–known of the Classical Economists, or of any

The Relationship Between Division Of Labor And The Extent...
Introduction
Adam Smith was a famous philosopher and political thinker known for his work The Wealth of Nations that revealed the relationship between the
division of labor and the extent of the market. David Ricardo was a prominent philosopher, who majorly contributed to the field of political economy,
namely by one of his works On the Principles of the Political Economy. Consequently, both political economists wanted to explain the pattern of
economic specialization under free trade. Although, their perspectives did differ on some aspects. Thus, this paper intends to explain how Smith
understands the relationship between deepening divisions of labor and the extent of markets, to explore whether Smith is right, and to reveal the
distinction in approaches, provided by Smith and Ricardo.
Smith's Understanding of the Relationship between Division of Labor and the Extent of Market
In beginning to understand the viewpoints of each individual, it is important to understand how they each define the relationship between division of
labor and the extent of market. According to Smith, the relationship is direct, as the division of labor appears in result of the human necessity to
exchange (Smith 2000). Hence, this interdependence leads to the specialization of production and international trade among nations or individuals.
Following Smith's evaluation on the scope of the division of labor it is preconditioned by the market and human talents that operate within the system
(Smith

The Theory Of Economic Growth
CHAPTER 2: LITERATURE REVIEW Abstract The theory of economic growth sparked a revolution that has touched most societies across the globe.
(Need to finish the abstract) 2.0Introduction The aim of this original piece of research is to contribute to the overall understanding of how financial
development effects different sources of economic growth alongside the effectiveness of fiscal policy. In highlighting this research direction, a strong
literature review is needed to indicate if any gaps exist. As the topic is well researched and broad, it is important to streamline this research into a
specific yet important fields to identify these gaps. This literature review will therefore investigate into the following key areas: the history of economic
growth, modern growth theories: exogenous and endogenous, financial development growth and the effectiveness of fiscal policy towards reducing
economic uncertainty that ultimately affects growth. 2.1The History of Economic Growth A considerable amount of theoretical and empirical
literature emerged during the nineteenth–century surrounding the theory of economic growth. If one is to complete detailed research into how financial
development affects different sources of economic growth alongside the effectiveness of fiscal policy, a meaningful and well–structured literature
review must be presented. Due to the complicated nature of such a theory, a historical frame work will be adopted to dilute its complicated nature. The

George Smith Wealth Of Nations
By this he meant that if they can sell the items the public will buy then the result will be to make money. If they can satisfy the needs of the consumers
then they will receive bountiful rewards. In Smith's head this system not only makes the baker, butcher, and brewer wealthy, but also the nation as a
whole. When the citizens are working productively to make themselves better then the nation will prosper too. In today's society the invisible hand
theory seems to lead capitalism and free markets efficiently through controversy of supply and demand for deficient resources, other than for the benefit
of an individual.
"The Wealth of Nations" argues that division of labor and the specializing in work will yield abundance. Smith states, "It is the great multiplication of
the productions of all the different arts, in consequence of the division of labor, which occasions, in a well–governed society, that universal opulence
which extends itself to the lowest ranks of the people". The ideas that Smith presents in "The Wealth of Nations" has effectively changed the import and
export livelihood. Smith constituted the idea that is currently known as GDP or Gross Domestic Product and he fought for free commerce.
Before Smith wrote "The Wealth of Nations", all countries used gold and silver as a basis of wealth. Although, Smith disliked... Show more content on
Helpwriting.net ...
We do know that they both agree on the rent theory but many the disagreements are rarely based on theoretical criteria but rather the policies and
interpretations. Another equally argued disagreement between the two was the economic method and exchange value. Ricardo used costs to figure the
value but wanted labor to be the one significant exchange value. Malthus argued that there should be a cost analysis integrated with the supply and
demand scheme. Malthus tried to explain the measure of value and the exchange of

The Promise And Perils Of Globalization : The Case Of Nike
To maintain positive balance sheet managers ought to constantly be in search of new strategies to do so. This may include upgrading of production
equipment's every five years, staff training, and business expansion just to mention a few. An expansionary policy is necessary to promote brand
recognition, increased revenue, prolong the life cycle of products, increase customer base and loyalty. When a business is growing the opportunities
presented by Economies of Scale become an added advantage to the firm. According to Locke and Siteman (2002), the story of Nike started in 1964
with the creation of Blue Ribbon Sport by Phil Knight and Bill Bowerman (p.3). They understood the benefits of comparative advantage in the
production process and immediately began outsourcing the production of goods. The comparative advantage Nike had over its revivals was so
overwhelming that Nike decided to become more involved in the production. What next for Nike? In the following paragraphs, we shall be answering
questions related to the complexities of expansion amid a globalized world, drawing inspiration from "The Promise and Perils of Globalization: The
Case of Nike", a working paper presented by Richard M. Locke and Alvin J. Siteman.
When Nike was founded technological advancement in communication was still very primitive. Nike will outsource shoe production with Japanese
companies until the oil crisis of 1970 and the new labor which consequences lead to an increase in production cost. As a

Mercantilism Analysis

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