CLASS MARCH 31ST

Answer these questions giving your opinion to justify.

1- On 5', the presenter says that Smith would be amazed if he saw a port's activity
today. Why do you believe that's true?
Adam Smith would be amazed because the progress of the last 250 years has been
explosive, and the massive scope of international trade today would have been
unimaginable even a few decades ago. In the 18 th century, he wrote that free markets
and free trade would connect the continents in global prosperity, and now every corner
of the earth is now linked to every other. We can say that Adam Smith foresaw the
workings of today’s world more than 200 years ago.
2- How does the principle applied on the Whole Food Market store relate to Adam
Smith? (30'40 aprox)
The vision for Whole Food Market was to sell healthy food to people, help people to
reach their highest potential through having good health. But there was also a sense
that people that work there should be flourishing and should be happy in their work,
and at the same time, there was a feeling of responsibility for the larger communities
that Whole Foods was trading with. What seems to make Whole Foods so successful
is that the people who work there are strongly committed to all the stakeholders, to
customers and team members, and to suppliers, which has resulted in highly
committed employees and very faithful customers.
This was based solidly on Adam Smith’s philosophy: you are going to be better at
business if you can understand your customers and generally sympathize with them,
as well as understanding and sympathizing with your employees.
3- What principles influenced the idea of new nation? (48'55)
The principles that influenced the idea of new nation were “Every man is left perfectly
free to pursue his own interest in his own way… The sovereign is completely
discharged from a duty [for which] no human wisdom or knowledge could ever be
sufficient; the duty of superintending the industry of private people”. It is also worth
mentioning that the fact the United States sees itself and talks about itself as land of
opportunity is also a Smithian vision.
4- Why would Adam Smith argue that containers do not just carry goods? (53'40)
Those containers did not just carry goods but prosperity and a better quality of life to
many people. Global trade increased drastically and it was a kind of development that
would also result in a reduction in global poverty, since many people could start to
earn a living because of that.
5- Can you think of any recent events that cost the global trade of products $400
million an hour? (not on the video)
A few days ago, the Suez Canal, one of the world’s busiest trade routes, was blocked
for 6 days after the accidental grounding of Ever Given (a Golden-class container
ship). This had a significant impact on other shipping, with at least 369 ships queuing
to pass through the canal.
 6- How do Locke’s ideas relate to capitalism? (not on the video)
Locke believed that individuals have the right of the land in which they worked (i.e.
right to their physical labor). People could transform the land, work in it and decide
what they are going to do with their crop (consume them or trade them with people for
other goods and services they might need). In this way, the king did not have control
over the individual person and their natural rights.
Locke’s ideas are related to capitalism in that they guarantee economic freedom, and
also involve private actors owning and controlling their property according with their
interests.
7- How is religion (Protestantism) related to capitalism? (not on the video)
A relationship between Protestantism and capitalism can be established because of the Protestant
Reformation of the 16th century. Traditional disrespect for acquisitive effort was diminished, while
hard work and frugality were given a stronger religious sanction. Economic inequality was justified
on the grounds that the wealthy were more virtuous than the poor, and because of this people
decided to go for economic independence.