Absolute Advantage By Adam Smith Essay - 1507 Words

Absolute advantage is the ability of a country, individual, company or region to produce a good or service at a lower cost per unit than the cost at which any other entity produces that same good or service. The main concept of absolute advantage is generally attributed to Adam Smith for his 1776 publication An Inquiry into the Nature and Causes of the Wealth of Nations in which he countered mercantilist ideas Ricardo (International Encyclopedia of the Social Sciences, 2007). Adam Smith, the classical economist who was a lead a leading advocate of free trade on the grounds that supported the international trade of labor, founded his concept of cost on the labor theory of value within each nation that labor is the only factor of production and is homogeneous and the cost of a good depends exclusively on the amount of labor required to produce it (Carbaugh, 2014). Smith’s trading concept of absolute advantage for two-nation and two-product world explains that the international t rade will be beneficial when one nation has an absolute cost advantage in one good and another nation has an absolute cost advantage in another good. In short, each nation benefits by specializing in the production of the good that it produces at a lower cost than the other nation, while importing the good that it produces at a higher cost (Carbaugh, 2014). However, Smith argued that it was totally impossible for all nations to become rich simultaneously by following mercantilism because it is possibleShow MoreRelatedInternational Trade Theories, Trade, Cultural Diffusion, And Economic Trade Theory1374 Words   |  6 Pagespromote their international trade. Adam Smith Absolute Advantage Adam Smith a Scottish an economist, known as the father of free trade and he was recognized as the founder of modern economics and as one of the first and most famous thinkers who argued in favor of free trade. According to Blecker (1997) Adam Smith developed the theory of absolute advantage in 1776. The concept of his theory absolute advantage was that, when the country has an absolute advantage should be able to produce more outputRead MoreDifferent Theories Concepts Of International Trade Theories1697 Words   |  7 Pagesbenefits to promote their. According to Blecker (1997) Absolute Advantage Adam Smith a Scottish an economist, known as the father of free trade and he was recognized as the founder of modern economics and as one of the first and most famous thinkers who argued in favour of free trade Adam Smith developed the theory of absolute advantage in 1776. The concept of his theory absolute advantage was that, when the country has an absolute advantage should be able to produce more output of goods and servicesRead MoreAdam Smith and David Ricardo Had More Similarities Than Differences in Their Ideas623 Words   |  3 Pagestrade camp, Adam Smith and David Ricardo. Adam Smith established cornerstone of free trade and David Ricardo put a stepping stone on it. Since Ricardo read the wealth of nations, Smith’s masterpiece, and developed his theory, most of his thinking has a lot of similarities with that of Smith. Division of labor and free trade took deep root in their mind. When it comes to object of nationâ€⠄¢s free trade, however, their opinion showed dissentience with absolute advantage and comparative advantage. DivisionRead MoreThe Theory Behind Absolute Advantage1141 Words   |  5 Pagesforward by Adam Smith (Absolute advantage, 1776) which was then expanded on by David Ricardo with his theory of the Ricardian Model (Comparative advantage, 1817). Also including the Heckscher-Ohlin model (relative factor abundance, 1919, 1933) and the ideas of New Trade Theory (Economies of Scale and Imperfect Competition). These ideas will be evaluated and synthesised to see if these explanations truly explain the reasons of trade theory. Absolute advantage was an idea suggest by Adam Smith in 1817Read MoreA Systematic Theory Of Population Theory1611 Words   |  7 Pageseconomists, along with Thomas Malthus, Adam Smith, and James Mill. Also, he wrote books that deal with theory of diminishing returns, theory of distribution of income, views of unemployment, theory of comparative advantage, and a brief assessment of his overall contribution. However, in this paper, I will focus on Ricardo theory of comparative advantage and how is it an improvement on Smith’s theory of Absolute Advantage. According to the investopedia, a comparative advantage is an economic law that demonstratesRead MoreGlobalization And International Trade Theory1203 Words   |  5 Pagesbig role in every person’s life. The credit should go to every economist who has contributed to the development of international trade theory. Trade is the consequence of the human â€Å"propensity to truck, barter, and exchange one thing for another † (Smith, 1776). Different people have different propensities for trading, so do different economic periods have different economic conditions, which require different international trade theories. This could be the material cause for the development of internationalRead MoreAdam Smith : An Era Of Classical Political Economy1430 Words   |  6 Pagesof â€Å"classical political economy†, Adam Smith (1723-1790) has challenged many previous political-economic assumptions, notably the Mercantilist points of view, to prosper and strengthen a state. In his most influential work Wealth of Nations (1779) and various other works of his, he has put forward his arguments, given a critique of their ideas, and formulated theories of how the market and trade should instead be. This essay will show in which ways Adam Smith, as a free economy capitalist, hasRead MoreMercantilism Analysis770 Words   |  4 PagesAdam Smith and David Hume were the founding fathers of anti-mercantilist thought. There were number of scholars who found many limitation of mercantilism even before Adam Smith developed his theory that could fully substitute it. The criticism made by Dudley North, David Hume, and John Locke eroded much of mercantilism and because of which it uncertainly lost its favour during the 18th century. In the year 1969, John Locke made an agreement that prices differ in proportion to the quantity of moneyRead MoreInternational Trade Theory Of Comparative Advantage And Absolute Advantage1485 Words   |  6 Pagestrade explain why countries have the opportunity to trade, theory of comparative advantage and absolute advantage. Adam Smith came up with the theory of absolute advantage where the country that produces more of one good that another country has simply an absolute advantage over it. This theory normally constructed with two commodities and two countries. In Schuhmachers article â€Å"Adam Smith’s theory of absolute advantage and the use of doxography in the history of economics† he says, â€Å"each nation canRead MoreThe Advantages of International Trade803 Words   |  3 Pagesfrom other countries. 2.1 Theory of International Trade The basis for international trade is the specialization. Specialization refers to a country’s decision to specialize in the production of a certain good or list of goods because of the advantages it possesses in their production. Different nations specalize in the production of those goods and services for which their resources are best suited. An individual who attempts to be entirely self- sufficient would have to do everything herself

Obesity Is A Health Risk - 1474 Words

Obesity is defined as a condition characterized by the accumulation of excess body fat, this abnormal or excessive fat accumulation may impair on one’s health, leading to a reduced life expectancy (Health Boosters, 2012). Obesity occurs when an individual’s energy intake exceeds their energy expenditure, the larger the imbalance the more rapid the weight gain (Medibank, 2010). For practical reasons, body weight has been used to indicate whether someone is overweight or obese, and is commonly calculated by Body Mass Index (BMI)(NSW Centre for Public Health Nutrition NSW Department of Health, 2007). BMI = (Weight (kg))/(ã€â€"Heithetã€â€"^2 (m^2 ) ) Obesity is a health risk and can lead to a range of medical conditions and complications (Medibank, 2010). An obese person has a higher possibility to suffer form many cardiovascular and musculoskeletal diseases and some cancers, e.g., type 2 diabetes, osteoarthritis, and pancreas cancer (Medibank, 2010). In addition, b eing overweight can hamper the ability to control or manage chronic disorders (Peeters and Backholer 2012). As the level of excess weight increases, so does the risk of developing these conditions (Aihw.gov.au, 2014). However, obesity has becoming a growing global health problem since more and more people tend to put on unnecessary pounds nowadays (Shah, 2010). Obesity has become the single biggest threat to public health in Australia today; it has overtaken smoking as the leading cause of premature death and illnessShow MoreRelatedThe Health Risks Of Obesity Essay1495 Words   |  6 PagesIntroduction Obesity is one of the most significant health concerns that both children and adults in the USA are facing today. It can be defined as a condition of having too much fat in the adipose tissue of the body to the extent that it impairs body health, and is different from overweight which implies having too much body weight. This is because the weight of an overwieight person can be as a result of body muscle, fat, bone and water. However, the two terms imply that an individual’s weightRead More Health Risks and Obesity Essay1397 Words   |  6 PagesObesity has become the silent killer in American society. It is a risk factor for numerous chronic diseases including the four leading causes of death. Obesity can be linked to stroke, heart disease, cancer and diabetes, all serious health problems that can be fatal. Obesity is linked to 300,000 deaths annually in the industrial world (Flamholz, 2001). Often in society and in the medical community there exists a lack of understanding that obesity is in fact a disease and needs attention, otherwiseRead MoreObesity : A Major Health Risk1976 Words   |  8 PagesObesity is a major health risk. The body changes that occur during obesity are linked to morbidity and mortality disability from diabetes mellitus, cardiovascular disease, hypertension, stroke, osteoarthritis and cancer1. The prevalence of obesity and its comorbidities has dramatically increased in recent decades, especially amongst children1. Currently 11% of children in Snohomish County Health District (SNOHD) are obese4. The high prevalence of obesity can be reduced by addressing its main causalRead MoreObesity As A Risk Factor For Cardiac Health844 Words   |  4 Pagesthat they all had the same results to their surveys and data collections and the same conclusion; obesity is a major problem in American society and it leads to multiple health issues. Data shows that obesity is the cause of chronic disease risk, morbidity, high health care costs and s ocial costs (Nestle Jacobson 2000). After the American society has identify obesity as a risk factor for cardiac health, many federal agencies has come up with guidelines, educating American people how to reduce theirRead MoreObesity : Health Risks And The Social Stigma1514 Words   |  7 Pagesexercise as a way to combat obesity and improve personal health. Everyone knows that they’re good for health. It’s common sense. Every doctor tells their overweight patients that they should watch what they eat and hit the gym. With obesity being associated with diabetes, heart disease, high blood pressure, and so many other diseases, you would be hard-pressed to find people who say that the obese aren’t generally less healthy than their thinner friends. Between the health risks and the social stigma thatRead MoreEssay about Health Risk Associated With Childhood Obesity2216 Words   |  9 PagesChildhood obesity is a disease where excess body fat affects a childs heal th or wellbeing. With the number of children affected by the disease increasing, it is important to understand the consequences. Not only will obesity influence a child’s physical heath, but it can also affect their emotional and social health as well. Acknowledging that obesity is a preventable disease should help lower the number of children affected by it. It is not about dieting; it is a lifestyle change that should beRead MoreObesity As A Disorder Involving Unwanted Body Fat That Increases Health Risks2116 Words   |  9 Pages Obesity is a disorder involving unwanted body fat that increases health risks. It has been a huge concern in America. Currently about more than half of America is either obese or overweight. Obesity affects the body in a wrong way. It has caused type 2 diabetes, heart disease, high blood pressure, stroke, high cholesterol, Gallbladder disease, and some types of cancer. Due to these diseases, there have been approximately 400,000 deaths i n America. Childhood obesity is the worse. It hasRead MoreObesity And Overweight Is The Accumulation Of Excessive Body Fat That Poses A Potential Health Risk1478 Words   |  6 PagesWhat is obesity? Obesity or overweight is the accumulation of excessive body fat that poses a potential health risk to an individual. It is measured by the body mass index (BMI). The weight (kilograms) of the person is divided by his or her height squared (meters). A BMI greater than or equal to 30 is considered obese and a BMI greater than or equal to 25, but less than 30 is considered overweight (WHO, 2014). People who are obese or overweight are highly at risk for many chronic illnesses, suchRead MoreObesity Involves Excessive Body Fat That Increases The Risk Of Other Health Related Problems953 Words   |  4 PagesObesity involves excessive body fat that increases the risk of other health related problems (MedlinePlus, 2014). The health related problems includes high blood pressure, high cholester ol, type 2 diabetes, cardiovascular diseases, sleep disorders, musculoskeletal disorders and associat-ed limitations in physical activities (MedlinePlus, 2014). According to the Center for Disease Control and Prevention (CDC), (2015) 17% of children aged 2-19 are obese. One in five children in the United States isRead MoreChildhood Obesity : Obesity And Obesity1505 Words   |  7 PagesChildhood Obesity Introduction Childhood Obesity has become more critical public health issue worldwide. However, obesity ratio varies from country to country. In addition, up to a quarter of Australian children are suffering from childhood obesity and obese children are at higher risk to become obese adult. For this reason, child’s weight always matters because it can impact on their health in future. There may be many reasons which affect childhood obesity including sedentary life style, lack of

Research on Born Globals-Free-Samples for Students-Myassignment

Question: Discuss about the Internatinal Business. Answer: Introduction: The article is a review of the article Tanev, S., 2012. Global from the start: The characteristics of born-global firms in the technology sector.Technology Innovation Management Review,2(3), p.5.. It has discussed about various aspects of the article along with other critique articles to provide a transparent idea about the article. Three critique articles have been discussed n this report, such as: Re-thinking research on born globals, Lean and Global Technology Start-Ups: Linking the Two Research Streams and Born globals: A cross country survey on high-tech start-ups. The objective of the article is to present a vivid concept about Born Global firms. Analysis: In the article, Global From the Start, The Characteristics of Born- Global Firms in the Technology Sector the writer Stoyan Tanev has enlightened the concept of Born-Global firms that are established globally to compete in the global market. It has presented different features of such firms. Other authors have contributed in this research work. As opined by Knight and Cavusgil (2004), Born-Global firms are more innovative by nature. They have supported the concept of the Stoyan Tanev by their research that such firms need to be superior to meet the expectation level of the global consumers. The organizational management needs to perform in an innovative manner to support the organizational growth (Coviello 2015). The article Global From the Start, The Characteristics of Born- Global Firms in the Technology Sector has concentrated on the research work of different researchers who have studied the issues. According Coviello (2015), the leaders need to maintain unique organizational cul ture within the organization. It motivates employees to contribute for the betterment of the organization. They enhance their potentiality to some extent so it can fight to survive in the global competition. Knight and Cavusgil have stated in their research work that leaders of Born-Global leaders must have a wide knowledge about the international market and market entry strategy in the foreign market. Otherwise, they may face various difficulties while competing with other global companies. The article has focused on the issue that how a small-firms who has been designed to compete in the global context can battle against the large global enterprise and meet the expectation level of the large number of global consumers. The article has articulated some key features of the Born-Global Firms. According to the reports, such firms started their operation in the international market within a short period of its starting. The report claims, that born-global firms preserves limited financial and other assets. At the same time, their human resource is also shorter than other large and medium business organization. Another key feature that has been enlightened in the article is other sectors, such as- food, clothes and retails and so on that are expanding along with the technological sector. As per the report, management of the born-global firms must have different outlook towards the inte rnational market than other business organization, as expansion in the global market is not only an additional activity for them along with the domestic market. Unlike other business organization, their primary and main objective is to enter into the foreign market and battle against the global competitors to put a remarkable footprint in the global context. Thus, they must have strong knowledge about the international market and international business style. The management of the Born-Global Firms must have the capability of adopting new and innovative strategies that can be beneficial for their organizational growth. They must concentrate on their product quality. It is important to design the product quality according to the requirement of the consumers to put a strong footprint in the foreign market and reach to the global consumer. Writer of the article has claimed that the maximum number of born-global firms belong to technological sector, as it provides a wide opportunity to the business organization to expand and flourish. It is evident that technological firms mainly extend their wings in the countries that are technologically sound, so they can avail better facilities that will be helpful for the growth of their company. In this research, writer has concentrated on the barriers that have been faced by the business organizations often while operating in the foreign market. The writer has conducted a research work on this aspect to draw the conclusion. It is often evident that there are various issues that work as a threat for the start up business organizations in the foreign market. The writer have stated that the organizational manage ment must design their organizational structure in such a manner, that can beat such threats and gain desired position in the industry (Tanev 2012). According to Coviello (2015), leaders play the most crucial role in establishing a strong Born-Global Firms. Like Stoyan Tanev this researcher also claim, leader of such firms need to design their organizational structure in such a manner that it can be suitable for the trend of the global market. It is not easy to survive in the global market, one has to preserve great knowledge and vision about the international business and market (Coviello 2015 ). In the article Born Globals: A Cross-country survey on High-tech start ups, the writers Guisy Cannone, Elisa Ughetto has stated that since past few decades global expansion has become the trend for business organizations. In order to avail better opportunity and earn huge profit, many business organization is looking for the opportunity to establish a Born-Global Firm. According to the wri ters, the knowledge and strategy of the entrepreneur works as a key influential factor for such business organizations. It leads the organization to be constructed in an appropriate manner. In this research, writers have stated that it is evident that many Born-Global Firms is earning huge profit from the foreign market. This works as a motivational factor for other business organization to extend spread their wings in the foreign market. The study has stated that international business and entrepreneurship both are interrelated and often occur together in the case of Born-Global Firms. As per the study, the condition of the domestic market can play crucial role in influencing an organizational management to expand their business in the foreign market, as if the business organization is not getting sufficient opportunities to establish a bright future for the organization, the organizational management often looks for the opportunities in the foreign market. It is often evident that many business organizations are not able to achieve their desired position in industry due to lack of opportunities in the market. In this research work, writers have concentrated on this aspect of the Born-Global Firms. Some other contexts have been enlightened in the research work. Like previous researches, it has also concentrated on the potentially of the firms. Like Stoyan Tanev, the writers have stated that Born-Global Firms must have some unique and innovative potentiality that can support the growth of the organization in the foreign market. Born-Global Firms must have the capability to offer some unique and high quality products that can distinguish it from other rival brands. It will help the organizational management to run their business in the foreign market in an appropriate manner. According to the researchers, the management of the business organization must not leave any stone unturned to meet the satisfaction level of the consumers. It will help them to earn the desired position in the foreign market (Cannone and Ughetto 2014). The study has supported the research of Stoyan Tanev. In the research Lean and Global Technology Start-ups: Linking the two research streams has also concentrated on the entry of the Born-Global Firms in the global market. Like Stoyan Tanev, the writers of t his research work has also enlightened the aspect of barriers that often faced by the business enterprise in the foreign market. In this research, Researchers have stated that there are several issues that can be faced by the business organization while operating in the global market. It is considered as an integral part of the organizational structure. It is the responsibility of the organizational management to incorporate some efficient strategy to overcome such issues. In order to overcome these issues, the organizational leaders must have a clear idea about the market structure and market trend. It will be beneficial for the organizational management to heal the issue. It is important for the organizational management to design the organizational structure in such a manner that it can beat all the obstacles and earn the desired position in the market. According to the study, it is not easy to start a business venture n the foreign market, so the business leaders need to be care ful about all the aspects of the foreign business strategy and international market. It will help them to overcome all the upcoming obstacles in the near future. It is evident that business organization faces several complexities while flourishing in the foreign market. Thus, it is the responsibility of management to conduct research on the foreign market before taking any business venture. Thus, it will help the organization to establish a strong organizational structure by avoiding all the complexities in the foreign market (Lemminger et al. 2014). The researcher Stoyan Tanev has done qualitative research in his study. He has concentrated on some key issues of the Born-Global Firms, such as the barriers these firms face while entering in the foreign market, what are the factors that help the business organization to achieve success in the international market easily, how to design the organizational strategy for the international market. The researcher has constructed the research work on the basis of these questions. He has successfully conduct the research and drawn the conclusion. He has been supported by many other researchers in future for his research work. He has achieved his goal successfully, as it has been argued many other researchers that organizational strategy and capacity are the key components that can be beneficial for the Born-Global Firms. Moreover, he has been supported for his unique research on the leadership of such firms as well. Other researchers have also stated in their researches that it is important to have strong, skilled leaders for such firms who possess great knowledge about the international business and international market entry strategy. Thus, the writer Stoyan Tanev is successful to some extent in his research work. Conclusion: As per the previous discussion, it can be concluded that there is a common aspects of the Born-Global Firms that has been enlightened by every researcher, that management of such firms need to adopt innovative and unique business strategy to support the growth of the organization. Otherwise, it may face various issues in the near future. Leaders who are looking for opportunities to extend their business in the foreign market must consider the fact while designing the organizational structure. References: Cannone, G. and Ughetto, E., 2014. Born globals: A cross-country survey on high-tech start-ups.International Business Review,23(1), pp.272-283. Coviello, N., 2015. Re-thinking research on born globals.Journal of International Business Studies,46(1), pp.17-26. Lemminger, R., Svendsen, L.L., Zijdemans, E., Rasmussen, E.S. and Tanev, S., 2014. Lean and global technology start-ups: Linking the two research streams. In2014 ISPIM Americas Innovation Forum. ISPIM. Tanev, S., 2012. Global from the start: The characteristics of born-global firms in the technology sector.Technology Innovation Management Review,2(3), p.5.