4.3.1 Contemporary Economic Globalization


In the last section, you learned about the
the invisible hand
the concept that a community is improved by individuals acting in self-interest

In his book, The Wealth of Nations, Adam Smith claimed that individuals acting in their own best interests promote the good of their community. This concept is important in the development of capitalism.
invisible hand and
supply
the quantity of a goods or services that a producer is willing to provide at a particular price

For example, music CD producers are willing to produce CDs for sale from between $10 to $25, which gives them enough of a profit incentive to keep producing CDs. (Of course, a store can sell them for other prices than the manufacturer's prices.)
supply and
demand
the desire and ability to buy a good or service

Usually, when demand is high for a product, its price rises. When demand for a product is low, the price goes down. For example, if crops are poor, the price of wheat should rise because demand is high. In Africa, the prices of used cars from Europe are very high because new cars are very expensive.
demand.

In this section, you will consider how historical changes in the way people produce and trade goods led to increasing globalization. This increase in trade affects the kind of work people do, the way they make money, the goods and services they are able to buy, and the general wealth in the world. It affects every person in Alberta and every person around the world in one way or another.