Question

• Did Smith think that increased global contact was generally a good thing or a bad thing? How does he make his opinion on this clear?​

Answer 1

Adam Smith thought increased global contact through international trade was good, as it allows access to the best products at the lowest costs and promotes a system of free trade. He would counter Mun's benefits of mercantilism by criticizing protectionist policies and advocating for the efficiency of open markets.

Step-by-step explanation:

Adam Smith believed that increased global contact through trade was generally a good thing. He stated that international trade allows individuals in different countries to have access to the best products at the lowest costs. Smith's support for what he considers the worst of mercantilist policies, which includes trade barriers, is made clear through his advocacy for a system of free international trade based on comparative advantages. This perspective correlates with the modern view that globalization and international trade can create a better world by allowing countries to focus on their strengths and engage in mutually beneficial exchanges.

Smith would probably respond to Mun's claims about the benefits of mercantilism by criticizing such policies for hindering international trade and disrupting the natural flow of markets. Smith's economic philosophy heavily underscores the benefits of open markets and free trade, as opposed to the protectionist nature of mercantilism. His ideas suggest a realistic assessment of how countries can thrive economically by specializing in what they do best and trading with one another.

Answer 2

Smith never uses the term “capitalism;” it does not enter into widespread use until the late nineteenth century. Instead, he uses “commercial society,” a phrase that emphasizes his belief that the economic is only one component of the human condition.Mark Skousen writes in "The Making of Modern Economics", Adam Smith believed that, "Government should limit its activities to administer justice, enforcing private property rights, and defending the nation against aggression." The point is that the farther a government gets away from this limited role, the more that ..