...It became the thought among many Christian philosophers that the act of labor is synonymous to the act of glorifying God. Thus, Weber postulates what he defines a “calling,” - a specific activity that a person is thought good do in the name of glorification of God, which ultimately summarizes the essential purpose of each actor in the social. The various 'callings' ascribed to the populace spawned the capitalist division of labor. Although justifying material acquisition, the Protestant Ethic maintained an opinion of thoughtful disvaluement of possessions. That is, while truness to thy 'calling' and thankfulness for thy riches is sought, he must never be distracted from glorifying God, and remembering his purpose. True to Marx’s commodity...
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...ON THE DIVISION OF LABOR BETWEEN BOOKS ONE AND FIVE? The question on whether or not Adam Smith gives us two contrasting views on the division of labor has been debated for hundreds of years. However to truly answer this question we must first narrow our scope to determine whether the division of labor is beneficial to the society as a whole and is a goal worthy of pursuing from an economic standpoint. Adam Smith says ‘yes’ at first but later changes his mind upon realizing that, the division of labor could result in a deterioration of the human mind and social instability. More specifically, in Book One, Adam Smith points out that the division of labor is necessary and can bring about technological change as well as make the citizens of a nation more prosperous. However, in Book Five, Adam Smith talks about the deleterious effects of the division of labor on the work force and the inequality that it brings to society. In this essay, I will give a more detailed account of Smith’s view on the division of labor in Book One and Five of ‘The Wealth of Nations’. I will then proceed to crystallize why these two views are incompatible with each other. In Book One Adam Smith presents the positive effects of the division of labor. He believes that it makes society as a whole more productive and creates an economic surplus which everyone can enjoy through trade. He then illustrates how the division of labor actually accomplishes an increase in productivity. Firstly, the division of labor...
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...IT and the Changing Social Division of Labor: The Case of Electronics Contract Manufacturing[1]GLOBAL PRODUCTION AND THE INTERNATIONAL DIVISION OF LABOR IN THE AGE OF THE INTERNET Boy Lüthje Institute of Social Research University of Frankfurt Senckenberganlage 26 D-60325 Frankfurt/M Germany Telephone: 069/756183-30, -43 Fax: 069/747709 E-Mail: luethje@soz.uni-frankfurt.de Draft paper for conference Transforming Enterprise Department of Commerce Auditorium Washington, D.C., January 27-28, 2003 Draft! Comments and suggestions welcome, but please do not quote! The impact of information technology on business, economy and society cannot be examined without an analysis of the profound changes in the productive structure of global capitalism. In the electronics industry, a new model of outsourced manufacturing has emerged as the centrepiece of globalized production networks: Contract Manufacturing (CM) or Electronics Manufacturing Services (EMS). This form of network-based mass production is closely linked to the disintegration of the value chain and the emergence of the “Wintelist” (Borrus and Zysman 1997) model of competition and the rise of “fabless” product design companies in key sectors of the IT industry. In contrast to the general perception of the “informational economy” (Carnoy et al 1993, Castells 1996) as service- or science-based, the rise of the CM-model demonstrates that manufacturing still matters in the "new economy" (Cohen and Zysman 1987)...
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...What are the advantages and disadvantages of division of labor? By division of labor we mean an arrangement where by people perform different functions at the same time. Though the term, 'Division of labor' is applied in the field of economics, yet infact division of labor in modern society is not limited simply to labor but applies to all the factors of production and exists beyond the purely economic field. There may be three forms of division of labor. (i) Social division of labor This means division into occupation. Thus, there are farmers, weavers, teachers, priests, laborers etc. (ii) Technical division of labor This means the division of labor within a particular enterprise. Thus within a factory there are weavers, spinners, designers, accountants, managers and engineers. The work may be divided into complete tasks like spinning, weaving, bleaching, designing, finishing etc. or it may by divided into incomplete processes. It is said that work in a modern spinning factory is divided into 18 processes. Technical division of labor is marked feature of modern machine age. (iii) Territorial division of labor This is also known as localization of industries. Certain places or regions come to specialize in the making of certain articles; Hosiery at Ludhiana, Cotton textiles at Ahmadabad and Bombay, Jute industry at Calcutta, Leather industry at Agra and Kanpur etc. Division of labor is based on the principle of co-operation or interdependence. The different...
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...In microeconomics, division of labor is an approach applied in most organizations whereby complex and sophisticated activities are divided down into simpler tasks and assigning the same tasks to people who are specialized in those particular divisions (Boyes & Melvin, 2012). From the past record in history, there exist a relationship between division of labor with growth output of trade, increase in capitalism and growth of industrialization processes. In addition, division of labor enhances specialization hence increased and production. The division to specialty experts occurs both horizontally and vertically. This division brings a question on how the transactions taking place under the division of labor are coordinated to be in harmony with one another. At many times it is difficult because the different departments are managed by different directors who sometimes have contradicting ideas and strategies in running businesses of a company. Moreover, it has been seen in many organizations that, some institutions collapse due such leadership that take a different course. There are a number of strategies of achieving coordination of different divisions. For instance in a factory, the production processes are divided into various simpler operations. In these operations, there are workers who have been assigned to take care of them. The management then supervises the divisions in order to coordinate the whole system. In overseeing the operations, it can give instructions which...
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...Economics: Division of Labor article review your name American Military University 20 August 2014 DIVISION OF LABOR It is an economic concept that refers to the specialization of tasks in which a person whose the task he is best in; it a process in which a person focuses on a specific task in order to generate maximum results. According to (North, 1969) an article adapted from the Marx’s Religion of Revolution, most social scientists including the theologian and philosophers have concentrated on the issue of division of labor for a millennium. North also adapted Plato’s point of view that described a society as a community comprised of different social functions but with one goal. North described the term division of labor from biblical perceptive in which he analyzed the letter Saint Paul wrote to the church of Corinth that described a society as a body formed by many organs that performs specific tasks such that if one organ fails the whole body fails. From the economic point of view division of labor increases production since the production process is broken into small units of production, which is then shared among the workers according to their specialization. Looking back at history, the human species at early stages of evolution adapted the concept of division of labor, in which men went for hunting and the women were left at home preparing small firms and rearing of children. The more the human race advanced in...
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...gain them though exchange and for a nation, it is to increase the social wealth. Hereby, the way to gain gold and silver is international trade. II. THE DEVELOPMENT PROCESS OF THE THEORIES: 1. CLASSICAL INTERNATIONAL TRADE THEORY In the late 1790s, the point of mercantilism was challenged by the classical economists. Based on criticizing the mercantilism, Adam Smith proposed the division of labor theory. It has been 41 years from Adam Smith proposed the absolute cost in his the Wealth of Nations in 1976 to David Ricardo proposed the comparative cost in his the Principles of Political Economy and Taxation in 1817. This is the foundation period of international trade theory, that is, the Classical period. The absolute cost of Adam Smith is based on the division of labor theory. Adam introduced the division of labor theory to the field of international trade and established his absolute cost theory, thus demonstrating the fact that a nation can make the sources of each country most efficiently used to gain the increase of the total production, the enhance of consumption level and the save of labor time as long as the nation specially produce the products of which its production cost is lower than any other country in order to exchange the products of which the cost is high than any other country with its cost-low products. Adam pointed out that the base of...
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...society driven by self-interest can exist on the other hand, describes how the “System of natural liberty” appeared and how it works. Book 1 – Of the Division of Labor The World as today The wealth of an industrial nation is the power of labor and the division thereof in order to increase the input of all type of production. Smith explained “The division of the Labor” does not originate itself from human wisdom or of a plan, but is the consequence "of a certain leaning natural one to all the men, that the door to do business and exchanges something to another. And the motivation of this tendency to the exchange is not the benevolence, but the personal interest, that is to say the desire to improve his living condition for the better. Smith concept of wages of labor is a fundamental metrics to satisfy the effort required to produce goods and manufacture a product. The profit (return on sales or investment such as rental properties, commercial building and equipment), buy or sale stocks are conceptual means of increasing an owner’s return on investment. Smith demonstrated that the division of labor will add more efficient methods of doing different things and performing various tasks. My personal view of how the division of labor is successful is discovering how unique they are as they perform. People are hired (education plus training) to do one specific job and spend much...
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...Exam 2 1. Which of the following is NOT a component of the master budget? c. Budget to Actual Variance Analysis 2. Figure 4-10 The Manoli Company has collected the following data for use in calculating product costs: Activity Data: (expected and actual) | rug cleaners | sweepers | total | units produced | 50,000 | 250,000 | 300,000 | prime costs | $200,000 | $750,000 | $950,000 | direct labor hours | 10,000 | 40,000 | 50,000 | machine hours | 20,000 | 10,000 | 30,000 | number of setups | 25 | 75 | 100 | inspection hours | 1,200 | 2,800 | 4,000 | number of moves | 140 | 210 | 350 | Departmental Data: (expected and actual) | molding | assembly | total | direct labor hours | | | | rug cleaners | 5,000 | 5,000 | 10,000 | sweepers | 5,000 | 35,000 | 40,000 | total | 10,000 | 40,000 | 50,000 | machine hours | | | | rug cleaners | 17,000 | 3,000 | 20,000 | sweepers | 3,000 | 7,000 | 10,000 | total | 20,000 | 10,000 | 30,000 | overhead costs | | | | machining | $120,000 | $ 30,000 | $150,000 | moving materials | 40,000 | 30,000 | 70,000 | setting up | 70,000 | 10,000 | 80,000 | inspecting products | 20,000 | 30,000 | 50,000 | total | 250,000 | $100,000 | $350,000 | | | Refer to Figure 4-10. What is the unit product cost for rug cleaners using activity based costing? | a. $ 7.26 | | | | 3. Wheeling...
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...of how we as human beings have come to existence through the process of evolution. This theory appeals significantly to us for at least two reasons. First, it gives some of us who aren’t as religious a more satisfying validation of our origin and our destination. This view opposes Max Weber’s description of a Calvinist who always suffers great inner loneliness due to his ambiguous predestined fate. Second, the theory of evolution is in alignment with our positive and pre-established perception of progress and improvement. In his book An Inquiry into the Nature of Causes of the Wealth of Nations (1776), Adam Smith illustrates in details how to achieve progress and improvement in production through the concept of division of labor. Smith states that the division of labor not only improves how we are manufacturing goods but also creates interdependent relationships among all societal members, professions, and...
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...WORKSHOP III – SOLUTIONS OF SELF-STUDY PROBLEMS P 7-5: Massey Electronics a. The following table presents the allocation of the $9.5 million of shared manufacturing overhead using the four proposed schemes. Direct labor hours Direct labor dollars Direct material dollars Square footage Allocated overhead based on: Direct labor hours Direct labor dollars Direct material dollars Square footage of plant b. Texas 3,000,000 $60,000,000 $180,000,000 200,000 Mexico 4,000,000 $40,000,000 $200,000,000 300,000 Total 7,000,000 $100,000,000 $380,000,000 500,000 $4,085,000 5,700,000 4,465,000 3,800,000 $5,415,000 3,800,000 5,035,000 5,700,000 % Texas 43.0% 60.0% 47.0% 40.0% $9,500,000 9,500,000 9,500,000 9,500,000 Questions involving how to allocate costs involve what input base to tax, and hence how the choice of the taxing scheme affects the firm’s cash flows. Since Massey has tax loss carry forwards, the allocation of the $9.5 million manufacturing overhead does not affect taxes, which is usually an important cash flow stream to consider. The four allocation methods create significant differences in the dollars allocated to the two plants. In fact, the Texas and Mexico plants allocations vary by up to $1.9 million, depending on which method is used. Since the lines of business end up paying for these allocated costs through higher full cost-based transfer prices, the choice of allocation method could prove economically...
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...ESSAY Theme: “International labor division” The international division of labor was an achievement of the spirit of Liberalism. International trade has to some extent existed from the oldest times. There was a regular commerce in some commodities the production of which was limited to special geographical conditions. There was occasional trade when some extraordinary event offered unusual opportunities. But however important the civilizations consequences of this international traffic were and however important its amount was when compared with the technical difficulties that transport had to overcome, the role played by it in supplying the wants of the markets was negligible. A very small part only of the common man's daily consumption was dependent on foreign produce. The commodities imported might for the most part be regarded as luxury goods, as people could do without them without suffering too great privation. At the beginning of the nineteenth century Napoleon's continental blockade even if it had been strictly enforced would not have had any noteworthy consequences on the daily consumption of the masses in Central Europe. In those days for the ordinary man's supply of even sugar (of course, in those days cane sugar only) and cotton were luxuries. Globalization has led to the new international division of labor (NIDL) where production processes are no longer located in the national economies. In the recent past production processes are being shifted...
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...RELATIONSHIP BETWEEN DIVISIONS OF ECONOMICS AND LABOR ECONOMICS Insert name Insert institution Insert course Insert date Abstract Labor economics comprises the study of the factors affecting workers. Since all divisions of economics involve workers, it is prudent to evaluate their influence on labor economics and labor market for that matter. Consumption directly affects the supply of labor. If the workers experience an increase in their desire for consumption in relation to leisure, the labor supply curve will shift outwards. The workers will supply more labor at every given wage. The effect of public finance on labor economics may be through government taxation on the workers. If income taxes increase, workers will likely substitute leisure for consumption and supply less labor. Any effects on the supply and demand for labor will ultimately affect the labor market thus are essential in labor economics. Distribution of income may also affect the labor market especially if the distribution is unequal. Inequality in the distribution of income will affect workers and thus affect labor supply. Production of goods and services on the other hand determine the supply and demand for labor. Such effects directly influence the labor market. Table of Contents Abstract 2 Table of Contents 3 Introduction 4 Effect of consumption on the labor market 4 Effect of income distribution on the labor market 5 Effect of exchange on the labor market 6 Effect of production...
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...Back to Modern History SourceBook Modern History Sourcebook: Adam Smith: The Wealth of Nations, 1776 An Epitome Book I, Chapter 1. Of the Division of Labor: THE greatest improvement in the productive powers of labor, and the greater part of the skill, dexterity, and judgment with which it is anywhere directed, or applied, seem to have been the effects of the division of labor....To take an example, therefore, the trade of the pin-maker; a workman not educated to this business, nor acquainted with the use of the machinery employed in it, could scarce, perhaps, with his utmost industry, make one pin in a day, and certainly could not make twenty. But in the way in which this business is now carried on, not only the whole work is a peculiar trade, but it is divided into a number of branches, of which the greater part are likewise peculiar trades. One man draws out the wire, another straights it, a third cuts it, a fourth points it, a fifth grinds it at the top for receiving, the head; to make the head requires two or three distinct operations; to put it on is a peculiar business, to whiten the pins is another; it is even a trade by itself to put them into the paper; and the important business of making a pin is, in this manner, divided into about eighteen distinct operations, which, in some factories, are all performed by distinct hands, though in others the same man will sometimes perform two or three of them. I have seen a small manufactory of this kind where ten men only were...
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...use to apply fixed overhead costs to units produced? Predetermined overhead rate. 3. Activity-based costing is commonly used with standard costing. Using more activity drivers increases the potential for managers to get much more information from activity-based costing than from the traditional approach. 4. What is the result of substituting computerized equipment for direct labor? Less direct labor and more manufacturing overhead. 5. Java Gourmet Coffee reports the following data for April 2010 where 200,000 pounds of roasted gourmet coffee beans were actually produced (note: standard costs do not allow for any wastage), Actual: Direct Materials: Quantity of coffee beans: 210,000 pounds Cost per pound: $0.55 per pound Direct Labor: Direct labor rate: $19.00 per hour Labor hours used: 11,000 hours Variable Overhead: Actual costs: $21,000 Standard: Direct Materials: Quantity of coffee beans: 200,000 pounds Cost per pound: $0.50 per pound Direct Labor: Direct labor rate: $20.00 per hour Labor hours to be used: 0.05 hours per pound Variable overhead: $.10 per pound Refer to Java Gourmet Coffee. Calculate the total direct materials variance. 15,500 SP ́ SQ $0.50 ́ 200,000 = $100,000 SP ́ SQ $0.50 ́ 200,000 = $100,000 $0.55 ́ 210,000 = $115,500 $0.50 ́ 210,000 = $105,000 |_____$10,500 U _____|________ $5,000 U_____| Direct materials price...
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