Division of Labor According to Manuel Ayau Essay

According to Ayau, trade and cooperation is beneficial to all parties patronage differences among them in terms of capacity and talent. He states that everyone is made wealthier by dint of cooperation, and how it is that the securities industry economy leads to the benefit of everyone. In our world today, raft base their decisions on the comparison of alternative opportunity costs at the margin, so naturally, they demand the least costly option. However, a person can only add up rich by enriching others torpedoes claims to the moral high ground of those who propose that presidential term redistribution of wealth is a means to alleviate poverty (Ayau 32). Ayau explains the workings of the plain enterprise system, based on the benefits from mutual gains from trade arising from the creative productivity of a market-based and profit-guided system of division of grate.In addition, he explains that the division of labor through comparative advantage, satisfying societys needs, tra ding with and by enriching others is the way someone gain wealth. He says people intuitively do what goes by the name of cost/benefit analysis, for they are quite conscious(p) of what they are quite conscious of what they must forgo to acquire any(prenominal) they get in exchange. In his example, he explains it through simple diagrams and illustrations, with the said(prenominal) expenditure of time and without increasing individual productivity, the productivity of the combined driving force increases the wealth of the group, creating the opportunity for exchange with mutual gain (Ayau 37-41). In the end, Manuel showed how when deuce participants have different opportunity costs, when trading this is the key to understanding his proportion of increase in total wealth even when there is no increase in skill, resources, new technology, and etc. In the eyes of Ayau, people subjectively valve what they receive more than what they give and that wealth is made through comparative adva ntage.Works CitedAyau, F., M., Not a zero-sum game. The Paradox of Exchange. 2007. Part 1, pp.23-50.