The online version of the book is here.

http://www.online-literature.com/adam_smith/wealth_nations/

PDF’s are also available on the WEB.

This classic is must read for anyone with trade and commerce as their profession. Speaking of the Labour distribution trends Adam has split it into three different groups.

The Division of the Labour

Division of the labour is a must. In any economy with diversified talent pools streamlining the system will give optimal results and also helps survive the respective industries. For someone to achieve a task X there will be sub-tasks A, B and C which require a talent pool of P, Q and R respectively. Hence, the Division of the labour.

Occasion for the Division of the labour

Occasion is from the personal interests of the professional himself that we get his services rather than our own interests. “It is not from the benevolence of the butcher, the brewer or the baker that we get our dinner but from their regard to their own interest” Occasion also refers to the skill set the person holds and the kind of dexterity he has in that profession.

Queit true !

Extent of the division of the labour

This is the biggest deciding factor to the division. Extent of the market decides how the regular labour is carrying on their activities. If the Extent is small, one person cannot stick to one kind of work and hence comes the distribution of the skill set and reduced masters.

The book was written too long ago, hence the division if the labour clearly has a bigger variable called the Extent of the Market. If a potter is present in a town, he can easily produce and sell at the market which is available in the town and there shall be no potter around for some range and then there will be one more. This division cannot be otherwise. Today’s world of competition arises with the Market being huge and so are a lot of players and hence the competition. There shall also be a situations where the produce is greater then the market requirment and then the export has to happen or the produce will be wasted.

If the Product deteriorates over time the methodology shall not work. Changes to the extent of the labour are obvious to the impovements in the methods. An example from the book, the land carraiges business is effected with the water-carriage proving to be more effective in the labour cost, wear and tear and the maintanance. Water-Carraiges also prove to be effective in the trade between countries or continents seperated by sea.

To be continued ..

Advertisements