Division of labor is one of the most important concepts forwarded by Adam Smith. He believed it could improve the wealth of nations when each nation focused on production of only those things for which it had the resources and talent available. For example a country rich in oil should focus on export of oil, more exploration, and advancement in that field and related fields. Similarly another country that has coffee beans in great supply should concentrate on production of better coffee and export of the same. But if the oil country tried to become better at coffee and coffee country tried to drill for oil, this would not help either nation because the nation that is naturally endowed with oil or coffee can produce those items at much cheaper cost thus adding to its wealth and also is able to export to other countries at affordable rates. The other...
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