Global Interest Theory 10, How about Entrepreneurial Interest Theory

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This book uses the tools of modern economic theory to study and analyze the interests of entrepreneurship, explains the fundamental reasons and constraints of entrepreneurial activities with entrepreneurial interests, and analyzes the institutional environment and market mechanism for realizing entrepreneurial interests. This paper describes the internal law of entrepreneurial activities, and analyzes the internal mechanism and mode of action of entrepreneurial activities to promote economic growth, and then provides new ideas for improving the institutional environment of economic operation.

Satisfactory Answer: Heng Sorry Autumn Level 92009-11-02 Ricardo lived in a time when capitalism was far from developing to a stage characterized by the export of capital, and the export of capital to the world had not yet developed. Ricardo's explanation, as well as his observation of the problem, cannot but be limited by the actual commodities of the capitalist economy of the time. There is no doubt that Ricardo's theory of comparative interests was an argument for Britain, which was the world's factory at that time, to open up the international market, and to serve the interests of the British industrial bourgeoisie.

Theoretically, this doctrine is based on a series of strict assumptions, which deviate greatly from the facts. In addition, the theory itself has failed to scientifically demonstrate on the basis of the law of value, failed to reveal the main reasons for the formation and development of the international division of labor, and in addition, the theory adopts the method of static analysis, still less can it meet the requirements of social and economic development; in fact, a country's comparative advantage is constantly changing with the development of society, rather than being immutable, and these have become the theoretical limitations of the theory. However, the basic idea of this doctrine, that is, in the international community, all countries can achieve different degrees of benefits, and each country should produce and export products in which it has a comparative advantage, and it cannot but be said that it has a certain guiding significance for all countries to develop production through foreign trade, especially for developing countries with few products with absolute advantages.

Marx and Engels had expounded and expressed their views on interests.

The Marxist theory of interests holds that interests are the motive force of all human social activities; Conflicts of interest are the material root causes of the class struggle; Conflicts of interest have a dynamic effect on social development; Interests are the basis of ideas, interests determine ideas, determine and dominate political power and political activities; The material relations of production are the social basis and essence of interests, etc.

Everything proceeds from reality and seeks truth from facts.

Ricardo proposed the doctrine of relative cost or comparative cost, that is, each country should specialize in the production of its own superior product, the kind of goods that are relatively low-cost, and exchange them with other countries. For example, it takes 80 workers a year to produce a certain amount of wine in Portugal, while 90 workers work a year for wool; The production of the same amount of wine and wool in England required 120 and 100 workers respectively to work for a year. Portugal has an absolute advantage in the production of both commodities, but it has an even greater advantage in wine; The UK is less disadvantaged in wool production.

Portugal could then specialize in wine, and England could specialize in wool, and it would be beneficial for both sides to exchange them.

Comment: It seems to me that this is actually related to the marginal rate of substitution, and it is indeed a win-win situation for exchange, but implicit here is the condition that there are only two countries in the market, two goods are produced, complete information, no ** barriers, etc. So that's not the case, it's much more complicated.