Adam Smith's words and ideas from the "Inquiry to the Wealth of Nations" are still used today. Two hundred years after Smith's book, all the wealthiest nations have employed the division of labour, accumulated capital through investment to further increase the efficiency of production and keeping the market competitive. Capitalism has created abundance and raised standards of living all across the globe. But all nations cannot be wealthy. The countries, which have yet to industrialize and adopt Smith's economic model, are starting the race for capital late, and through this process one can't help but notice how history is repeating itself. What I am referring to is the mass social upheaval that comes as a cost of industrialization. .
All across the globe, nations participate and compete with each other in the pursuit of profit in hopes to accumulate capital. In this age, nations are intertwined economically as multi-national corporations employ developing economies to manufacture goods that are enjoyed all over the world. Global commerce, it can be argued, opens new markets, encourages partnership and trade among countries, and gives developing nations the opportunities to industrialize, increase their efficiency and raise their standard of living. What we have in effect is the trickle down theory being applied on a global scale. But the deteriorating social conditions in developing economies tells us that this is not so. The vast majorities of nations, who negotiate with multi-nationals in hopes to bring prosperity to their countries, end up in social turmoil, while a small minority, or in some cases no one except the multi-nationals, benefit economically. .
Multi-nationals employ contractors in developing nations to manufacture their products. The corporations do not own the factories in which their products are being produced, so the contractors compete with each other for employment from multi-nationals.
