Adam Smith

The Classical Economics of Adam Smith Focuses on physical resources in defining its factors of production: Land or natural resources – naturally-occurring goods such as water, air, soil, minerals, etc. Labor – human effort used in production Labor Capital – not a factor of production, but used to purchases machinery, tools and buildings

Factors of Production In economics, factors of production (or productive inputs) are the resources employed to produce goods : Transformed by the production process Land (natural resources, gifts from nature) Labor (the ability to work) Capital goods (human-made tools and equipment Rents to the land owners, but not F. of P.

The Wealth of Nations Invisible hand Free market

Where Is The Cash That Buys T-Bills ? Cumulative trade deficits since 1985 total $8.2 Trillion

Ten Largest World Banks - Capitalization 1. ICBC, China 2. China Construction Bank, China 3. Bank of China, China 4. HSBC, UK 5. JP Morgan Chase, US 6. Wells Fargo, US 7. Banco Santander, Spain 8. Mitsubishi UFJ Financial, Japan 9. Bank of Communications, China 10. Intesa Sanpaolo, Italy