Adam Smith continues along the same path of thought that was started by Hume. He agreed that there should be a movement of labor to cheaper producing areas but in a way that provided a more direct specialization. This “division of labor is what would be recognized today as an assembly line where workers do one task and one task only instead of producing a single good from start to finish.”(David Harvey) This type of specialization leads to a countries absolute advantage. This is also focused on how the developin...
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...ions of comparative advantages, absolute advantages, specialization and division of labor. Even to prove further that free trade helps is the development of these men’s policies in economies around the world and comparing them to countries with what Hume would say governmental tyranny toward trade. These implementations help guide developing countries become developed countries fast. Even with tariffs and other trade restrictions coming about in today’s world. Free trade is a necessity for specialization and division of labor needed for models in today’s world as well as past economies growing. Developing countries can learn a lot from the economic thoughts from these three men in ways to help them figure out their absolute and comparative advantages so they can participate in world trade to find faster and more efficient economic growth and allocation of resources.
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