PRTO1000 Study Guide - Midterm Guide: Joseph Schumpeter, Fiduciary, Arbitrage
Document Summary
Gunpowder and printing from china/not the west. Poor need globalization to increase living standards and access to technology and aide, but do they ever actually receive it. Patent laws hurt smaller businesses in other countries. Creative destruction: innovation/ monopoly - apple headphone jack rip skull candy. Investment firm that makes crazy choices and sometimes it works out. Arbitrage: information arbitrage is the pulling of one lens or way of thinking into another field of study in order to better understand the second field of study. Schumpeter believes that in such a global world everything is so interconnected that it is impossible to think in only one lens. Workers have to specialize in bigger company rather than sharing the work and doing everything. Benefits: increase dexterity, saves time, new machines. Natural price is when you break even. Human nature is more than self interest, sympathy is the most important human emotion.
