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To manufacturing of pins, Smith has noticed that their manufacture switched on nearby
Eighteen operations which were carried out separately. Thus day development
On one worker made 4 800 pins. At absence
And divisions of labour one worker hardly could make specialisations
Even 20 pins in day.
The division of labour allows people to take benefits from distinctions in them
Abilities and skills, and to employers - to distribute tasks between
Workers according to their qualification. Only at a division of labour
There is possible an application difficult, demanding mass production
Technologies, inconceivable in the conditions of a subsistence economy.
OBSTACLES HARM TO TRADE
Trade is productive, it facilitates cooperation of people and increases
Manufacture of the goods necessary to them. However the trading exchange is not free.
Expenses of time, forces and the other resources necessary for search of partners,
Negotiating and the conclusion of transactions, are called as trade costs.
They limit realisation of advantages of mutually advantageous trade.
Trade costs can be a consequence of natural barriers - oceans,
Mountains, the rivers and bogs. In these cases costs can be reduced a way
Investments in a construction of roads, transport and communication development.
However in many other cases high costs of trade are generated
Society - existence of taxes, licences, tariffs, quotas,
State regulation and the price control.
By whoever they have been created - the nature or people - high costs
Trade reduce its advantages.
Very important role in economy is played by the intermediaries promoting the conclusion
Transactions and giving to the parties of this process the information and others
Services: agents under the real estate, share brokers, automobile dealers,
Advertising agents, sellers of shops and a wide range of other trades of sphere
Widespread opinion that intermediaries are not necessary: they of nothing
Make, and only increase the price of the goods. However, an inaccuracy of the similar
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