eco paper

ECO 455 SPRING 2018 –

1st Assignment DUE March

1. For two weeks we covered the readings of Adam Smith. In his book, the Wealth of Nations, he presents the idea of the division of labor, principles which gives to the division of labor, the origin of money, the difference between natural and market price of commodities, and trade.

a. Please elaborate a coherent essay in which you explain and relate all these concepts b. And how in your OPINION these have influenced/helped/developed trade relations.

2. For two weeks we have analyzed the readings for Paul Bowles in which he presented the ideas

of capitalism and its evolution through in the past centuries. a. Please explain what are the main characteristics of capitalism b. Please use these characteristics to explain the pros and cons presentenced by specific

authors in chapters 2 and 3. c. Please explain WHY and HOW capitalism has been evolving from 1870’s to today. Make

sure you explain how and why capitalism has changed from mercantilism, to industrial capitalism, finance capitalism, imperial capitalism, national capitalism and global capitalism

3. In Good and Bad Capitalism, the authors explain the importance of entrepreneurship as another factor for economic growth. Please explain:

a. what are the main four classical factors that according to traditional economists contribute to economic growth?

b. The authors explain that there are FOUR categories or “theories” that can explain economic growth. Please make sure you explain the models and authors behind them

c. Define what is defined by “entrepreneurs” in the book and how does entrepreneurship contribute to economic growth and what are the elements that help entrepreneurship?

d. What is the role of innovations and radical breakthroughs for economic growth, and the entrepreneurial spirit and trade?

4. In Good and Bad Capitalism, Economic growth needs capitalism and vice versa. According to these authors, there are four different types of capitalism/capitalist styles, all of which affect trade.

a. Please pick one. 1) explain what that system is all about and 2) how trade would be improved or hindered by this style

b. How does trade relate to economic growth in the classical sense and also together with the concept of entrepreneurship

5. Anatole Kaletsky in his book Capitalism 4.0 explains that there are FOUR AGES OF CAPITALSIM. a. Please explain which are those four ages making sure you highlight reasons for the rise

and fall of each one b. Please explain the difference between the so-called “crisis OF capitalism” and “crisis

IN” capitalism