Adam Smith Essay

Business Administration

Principles of Economics and Business 1: Adam Smith

The wealth of Universities: The relationship between Students and Universities

In Smith’s book “Wealth of nations” is fundamentally explained how a country can improve his economy

trough the “Division of labour” and other important aspects to take under control to have a wealthy country.

Smith describes how is important to have one person for each role in the production of a good to improve the

productivity. Having every worker specialized in a particular action reduces the timing compared to a factory

which does not have this kind of organization because there is a significant loss of time if one worker has to

they produce or their services to exchange for other good of services that they need.

After all these conclusions is really important to underline that this kind of operations can be wealthy only if

people is interested in what is produced or offered because if there is no demand for a kind of product it will

not be suitable for the market in that region. If you are specialized in something that is not requested in your

region you should move where it is a trading good.

The final useful factor to have a wealthy country/company is to have a port that can simplify the logistic

aspect and gives the possibility to trade easily with the other countries. For this reason, the biggest cities

around the wold are mainly close to navigable waters to ship their products worldwide.

As Smith says no one gives you anything for benevolence but just for their own profit and this is the base of

every economical exchange because without profits there is no reason to produce a good or to provide a

1. The high reputation of the University;

2. To have the opportunity to live in Amsterdam;

My main interest is obviously to obtain high scores to graduate from this university and become an

interesting candidate for high rated companies to be a successful person and achieve my life goals related to

my earnings and my personal life. Fundamentally i pay the fee of this university to reach these targets and in

exchange they give me back a high education and offer me lessons run by qualified people.

My target is based on improving my personal knowledge and university’s target is to obtain an income from

my enrolment and have someone who will provide this faculty at the end of my studies.

We are both having what we need because I am interested in learning and the University is having a profit

with my fee. With this exchange we are having both what we desire and this makes that part of the market

arguments against this business making it really effective.

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