POL101Y1 Lecture : Lecture Note How The Rest Got Rich
2 Feb 2011
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getting rich has not much to do with ethics but systems. hong kong pillar"s economy tourism ,business services, logistics(shipping) the invention of the flute ship: cheap to make, fewer men to handle-decrease the cost, the haul was shallow-increased cargo capacity. market principle: increase supply-decrease price, increase consumption, increase trade and market share, fast forward to chinese manufacturing. assuming demand is constant, consumption is a function of price-the lower the price the better. (buffalo) an increase in supply decreases price- increase in consumption(wal-mart) a decrease in supply increases price- decrease in consumption(energy) www. notesolution. com. adam smith, the wealth of nations (1776: invisible hand of the market, absolute and comparative advantage, specialization, productive efficiency, universal division of labour-exports and imports. on the universal economic benefits of free trade \ under a system of perfectly free commerce, each country naturally devotes its capital and labour to such employments as are most beneficial to each.
