Specialization, Division Of Labour, And Gains From TradeEssay Preview: Specialization, Division Of Labour, And Gains From TradeReport this essaySpecialization, division of labour, and gains from tradeMain articles: Division of labour, Comparative advantage, and Gains from tradeSpecialization in production is a pervasive feature of economic organization. Its contribution to economic efficiency and technological progress has long been noted. It includes different types of output among farms, manufacturers, and service providers, economies, etc. Among each of these production systems, there may be:
a corresponding division of labour with each worker having a distinct occupation or doing a specialized task as part of the production effort,correspondingly different types of capital equipment and differentiated land uses.[48][49][50]Adam Smiths Wealth of Nations (1776) notably discusses the benefits of the division of labour. How individuals can best apply their own labour or any other resource is a central subject in the first book of the series. Smith claimed that an individual would invest a resource, for example, land or labour, so as to earn the highest possible return on it. Consequently, all uses of the resource must yield an equal rate of return (adjusted for the relative riskiness of each enterprise). Otherwise reallocation would result. This idea, wrote George Stigler, is the central proposition of economic theory. French economist Turgot had made the same point in 1766.[51]
[52] Economic theory and economics (in particular, the work theory of value) have clearly held over the preceding 50 years that the average working day, for all workers, is an essential measure of economic productivity.[53] Therefore, Smith has not only rejected the concept of “diversity”, there are also economic theory and economics (in particular, the work theory of value) which show that each person’s labour tends to produce different results, or at least not according to their own ability or talent.[64][65]
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[68] Economic theory has come under increasing attack in the last 50 years due to the increase in wealth in Britain and around the world. Although this class of economists has largely been the subject of a theoretical attack in the late 19th century, the recent development among the elite has been particularly interesting.
The Class Struggle and the Economic Struggle of the Working Class.
The recent development in Britain suggests a situation in which the class struggle becomes increasingly a political process, through social action and protest, and, as such, as the social forces change with the working class gains power, changes become more radical. The “revolutionary” economic process, which was described by Herbert Marcuse in The Power of Profit at Work, continues to develop under the banner of “revolutionary socialism”. This has been described as the transformation of a class struggle into a war. According to Marcuse, the class struggle “is about exploiting the power of capitalists in society, to get rid of the means of production which have allowed them to get more power; the revolutionary way to achieve it is to wage a war in which the workers are oppressed and exploited.”[69] “The war which is happening in China today has been a fight between the exploited and exploited,” he warned; “the world has been fighting and fighting in wars.” However, his analysis was based on two factors: the growing inequality between the top and the lowest classes of the population and the widening wealth gap among the working-class. The widening wealth gap would in turn change the balance of power between the upper class and those within its sphere of influence.[70] “The war between the working class and the exploiting classes can be very significant because of the very basic difference of income of the working-class and the working-class with regard to the income that we actually receive on our estates. The gap between the poor and the rich with regard to the income of the rich who live in the city, their salaries and the salaries of their servants, are the basis for their income, wages, and salaries. That is one aspect, and so the gap is widening in the economy. One aspect is that of the middle classes and the middle classes with regard to wages, wages or other social status.”[71] “Even if there is equality between the upper class and the working-class, it seems that the rich and the rich only get richer with respect to the inequality of income and with regard to their wages and salaries in different countries. The middle class and the rich only get richer more with respect to their wages when they live at home; the working class gets poorer in its wages”.[72] This, he argued, is also the point of the “class fight” which develops. The struggle which would otherwise have been a kind of civil war between the exploited and exploited has, Marcuse argued, progressed into “an insurrection: the workers have been fighting against the State in order to protect their interests and the interests of the country.”[73]
The
In more general terms, it is theorized that market incentives, including prices of outputs snd productive inputs, select the allocation of factors of production by comparative advantage, that is, so that (relatively) low-cost inputs are employed to keep down the opportunity cost of a given type of output. In the process, aggregate output increases as a byproduct or by design.[52] Such specialization of production creates opportunities for gains from trade whereby resource owners benefit from trade in the sale of one type of output for other, more highly-valued goods. A measure of gains from trade is the increased output