Managing in Global Environment
Adam Smith wrote about the “invisible hand’ and was in favor of free trade. Michael Porter wrote about national competitive advantage.
Discuss how these 2 theories are related. State and explain your stance on free trade based upon your understanding and agreement/disagreement with these 2 theorists.
Invisible hand is a process in which result to be elaborated is produced with no detailed agreement between the agents. The other basic component is that the process is not intentional. The agents’ aims are not related to the actual results which are the byproducts of the aims. Competitive advantage as stated by Michael Porter is a function which compares buyer value efficiently than competitors (Dobb, 2000).
In both theories there is the concept of comparison through acquiring customers by having low prices and ensuring highly…..