a. How are the economic theories of Adam Smith (The Wealth of Nations , 1776) connected...

a. How are the economic theories of Adam Smith (The Wealth of Nations , 1776) connected to the “globalized” business environments of the late 20th Century and the present?

b. The People’s Republic of China and Hong Kong have been trading influences ever since the establishment of Hong Kong as a British colony a little over 100 years ago. While Hong Kong certainly reflects the broad cultural influences of its giant neighbor, what effect has this tiny territory had on the economic development of the PRC?

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Answer to the first question has been provided :

a) Adam Smith opposed monopoly and was more of a reformer . He advocated constant vigilance so that the political set up is not manipulated for the personal or economic benefits of just a handful of people . He advocated the functioning of free markets to attain the optimal wealth for nations . In this aspect the constant vigilance of the WTO or the monetary fund prevents countries from selfish moves in the present world of globalization . The practise of free trade among nations , lesser imposition of trade restrictions is another aspect of Smith's theories .

He is also famous for his theories of compensating wage differentials . Which means that dangerous or undesirable jobs tend to pay higher wages to attract workers to these positions . This phenomena is also seen in today's globalized world where outsourcing of work to countries where labor is cheap is a common practise . The wage differentials is now a global aspect .

Rahul Sunny answered 1 year ago

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