POL101Y1 Lecture Notes - Dutch East India Trading, Comparative Advantage, Economic Nationalism
18 Jun 2014
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Capitalism and bureaucracy have found each other and belong intimately together. weber. Decline of spanish dominance end of 16th c. Innovation development of wind turbines saw mills: multicultural people from across the continents were trading goods and knowledge. Able to reduce cost/unit east india company was able to out-compete the british. Increase supply decrease price b/c cost/unit drops. Increase consumption achieve economies of scale by reducing prices. Fast-forward to chinese manufacturing : 40 million migrant workers, wages of 50 cents/hr, 80% of wal-mart"s global suppliers are located in china, demonstrates the reduction of per unit cost by reducing wages and leveraging labour. Under a system of perfectly free commerce, each country naturally devotes its capital and the labour to such employment as are most beneficial to each. The pursuit of individual advantage is admirably connected with the universal good of the whole. david ricardo.
