By Adam Smith

This book was published on 9 March 1776 and is composed of three parts. It is well-known around the world because of its criticism of the mercantile system. The author focused on this topic due to the economic policy established in Great Britain, where he lived, during his life.

 

The main idea is the division of labor explained with a sewing pin manufacturer as an example. He mentions that one person is able to make a pin per day in a factory, but if people divide the labor, they can make thousands each day, which makes them more efficient and effective.

 

However, this division of labor cannot be applied in all industries. The example given by the author is agriculture, which varies depending on seasons in the year. It is evident that in developed countries the finished products are cheaper than in undeveloped countries, but is not the same with agriculture, for example, the corn has almost the same price in developed and undeveloped countries. 

 

All the examples previously described are only a part of Smith´s books, which is a must for any business student.

 

 

By: Mayte Martinez

 

 

 

References:

• Redwood, B. (2011, September). Grade Saver. Retrieved February 16, 2016, from http://www.gradesaver.com/the-wealth-of-nations