Nfansu Sawo
Econ 303
Winter 2016
Final Synthesis Paper
Free trade
Economic Philosophers have work extremely hard to make the world a better place by advocating for free trade policies, and also against any forms of trade restrictions. Free trade by simple definition means free movement of goods and services from one place or nation to another through buying and selling with no formal restrictions. Free movements of goods and services from one place to another should not be restricted if only resources are evenly distributed. In economics, it is widely acclaimed that human “wants” are unlimited while the resource to satisfy those “wants” are limited. Similarly, resources to satisfy those “wants” are not equitably distributed. These are some …show more content…
Some benefits he associated with specialization are time saving, invention and dexterity. These all come down to the point of “do what you can do best and allow others to be their best” 8. For instance, Blacksmith who makes bow and arrows and gives it a Hunter in exchange for meat is clear example of specialization. In this example, a Hunter cannot make good bow and arrows while Blacksmith was not good at hunting. As they engage in exchanges of their products, both Hunter and Blacksmith gain mutual benefit through …show more content…
He believes that competition is good for both local and foreign industries. He also states that agriculture can create trade surplus easily “5. For instance, farmers can easily sell their surplus produce and gain income from it. Also farmers can buy others goods and service from the income they realize from the sale of their products. Francois Quesnay uses the term “ laisser faire” in French that means free market policies. As other classical school of economics, Quesnay believe that the market should regulate it selves through demand and supply with free market policies. These free market policies almost similar to Adam Smith invincible hand in his theory of moral sentiments. In Smith “invincible hand”, he explains that market will regulate themselves through market forces of demand and
Econ 303
Winter 2016
Final Synthesis Paper
Free trade
Economic Philosophers have work extremely hard to make the world a better place by advocating for free trade policies, and also against any forms of trade restrictions. Free trade by simple definition means free movement of goods and services from one place or nation to another through buying and selling with no formal restrictions. Free movements of goods and services from one place to another should not be restricted if only resources are evenly distributed. In economics, it is widely acclaimed that human “wants” are unlimited while the resource to satisfy those “wants” are limited. Similarly, resources to satisfy those “wants” are not equitably distributed. These are some …show more content…
Some benefits he associated with specialization are time saving, invention and dexterity. These all come down to the point of “do what you can do best and allow others to be their best” 8. For instance, Blacksmith who makes bow and arrows and gives it a Hunter in exchange for meat is clear example of specialization. In this example, a Hunter cannot make good bow and arrows while Blacksmith was not good at hunting. As they engage in exchanges of their products, both Hunter and Blacksmith gain mutual benefit through …show more content…
He believes that competition is good for both local and foreign industries. He also states that agriculture can create trade surplus easily “5. For instance, farmers can easily sell their surplus produce and gain income from it. Also farmers can buy others goods and service from the income they realize from the sale of their products. Francois Quesnay uses the term “ laisser faire” in French that means free market policies. As other classical school of economics, Quesnay believe that the market should regulate it selves through demand and supply with free market policies. These free market policies almost similar to Adam Smith invincible hand in his theory of moral sentiments. In Smith “invincible hand”, he explains that market will regulate themselves through market forces of demand and