DVM2350 Lecture Notes - Lecture 4: Invisible Hand, Absolute Advantage, Classical Liberalism

• School: University of Ottawa
• Department: International Development and Globalization
• Course: DVM2350
• Professor: Tamara Kotar

Document Summary

An inquiry into the nature and causes of the wealth of nations. Economies of scale: if your making a lot of something, you are better off, it becomes cheaper for a country to be better at making something. Comparative advantage: one country is better at making something than another. How much natural resources a country has. Ability to have economic freedome and the the ability to chooses. Adam smith did not just talk about the monetary wealth of a society, but its ability to have economic freedome and choice. Workers specialize in one task, to produce one commodity. An operation to increase productive powers of labour. Supported taxes and tariffs, but the government should not regulate the economy. Ideas of foreign trade and comparative advantage is still relevant. Is it still worth will measuring gdp per capita in developing naions, when growth is very unequal.