Adam Smith Wealth of Nations Essay Example | Topics and Well Written Essays - 250 words

Adam Smith Wealth of Nations - Essay Example Smith is actually considered to be the Father of Modern Economics.Adam Smith's ideas as reflected in his work are still relevant today. His concept of free-trade is still what majority of the world's economy is practicing. Free trade, according to Smith, is the ability of the economy to produce the sufficient amount of goods and provide different varieties with the guidance of what he calls "the invisible hand." If there is a shortage of a certain product, price tends to increase which, in turn, gives higher profit to the producers. This entices more producers to enter the market which leads to the increase in supply of the product and more competition among the producers. Given this condition, price naturally gets lower. Once the price gets too low that the producers would incur losses than profits, they will be out of business. Although this competition can be due to human's pursuit of self-interest, this benefits the society as a whole by keeping the prices of goods at a low level and, at the same time, having a variety of products and services.This idea is what happens in our modern economic society. Businesses get into the market because they can see a potential profitable market. And what prevents these businesses to monopolize in their field is the fact that there will be other businesses or individuals who would want to get into the same market and have a fair competition.

Fundamental of International Buisness Essay Example | Topics and Well Written Essays - 500 words

Fundamental of International Buisness - Essay Example Investors are gaining confidence despite natural disasters and bombings due to the opportunities presented in the economic reforms. The Indonesian Rupiah is gaining strength against the dollars although its stability cannot really be gauged as of the present. With the country's membership to global organizations such as APEC, GATT/WTO and the ASEAN Free Trade Agreement (AFTA), several trade barrier laws have been eliminated and import tariff has been considerably reduced. Even the processing of licensing requirements has been made easier and faster as they move towards the creation of investor-friendly environment. Several major sea and air ports have been opened and free trading zones have been established. Since government is extending its full support to its Foreign Direct Investment (FDI) arm, investors can expect a more relaxed and positive atmosphere as they put up businesses in Indonesia. Bureaucratic red tape is still existent, though, so this is one of the things that we wil l have to deal with as it can definitely affect our time plan and even our budget. The country's location is ideal for trading because it is between Asia and Australia. There lies a big potential for marketing our product especially to countries such as China, Philippines, Malaysia, and of course, Australia.