Invisible Hand in the Vietnamese Context

In: Business and Management

Submitted By thuyhong42
Words 3465
Pages 14
Invisible Hand in the Vietnamese context
Introduction
Adam Smith is an infamous political economist in the UK and around the world. He has many valuable arguments among which this essay will refer to the theory of "invisible hand" which was coined in The Wealth of Nations. The invisible hand is essentially a natural phenomenon that guides free markets and capitalism through competition for scarce resources by maintaining equilibrium between the supply and demand of resources. Also, as market participants compete, driven by their own needs and wants, they involuntarily benefit society at large without the help of goverment. This essay will examine the core theoretical ideas behind Adam Smith’s invisible hand theory, focusing on the negative aspects, and show that the negative aspects are more prominent when applied to the article ‘Power trader accused of abusing monopoly position’
Understanding of theory
Adam Smith's invisible hand theory sets the foundation for laissez-faire economic philosophy, which describe the self-regulating behavior and minimize the role of government intervention and taxation in the free markets .Smith argued the most crucial variable in the market is the price and its functions is providing information telling people what to do and presenting incentive for them to act on this information. Both companies and workers are guided, as if by an invisible hand, to produce the goods and services that are most desired by consumers, which occurs when all of them are only pursuing their own self-interest. In his famous publication The Wealth of Nations, Smith makes the following statement: "It is not from the benevolence of the butcher, the brewer, or the baker that we expect our dinner, but from their regard to their own interest." Yet, in trying to maximize their own profits or wages, people are guided to produce the right goods and services even…...

Similar Documents

Context

...effortlessly tossed between players. With every false move the crowd gasped in horror, they knew it could be their last. With the seconds counting down, it felt like a time bomb was about to go off. Everyone held their breath as Nick Dal Santo lined up a goal. This goal would decide the match. It carried with it the hopes and dreams of thousands of onlookers, all crossing their fingers and hoping for the best. As he raised his leg to kick the goal you could have heard a pin drop, silence filled the stadium. He had done it! He kicked the winning goal! The crowd exploded into celebration as the St. Kilda club song echoed through the stadium. People were jumping on seats, giving each other ‘hi-fives’ and hugging anyone they could get their hands on. I left that night feeling as though I had witnessed something truly unique. I had never seen such a united group of fans, all wanting the best for their team. St. Kilda was their life, they lived and breathed to see their team succeed. The black, red and white army colours were literally imprinted in their brains as their passionate support led their team to victory....

Words: 640 - Pages: 3

Invisible Arab

...Book Review: The Invisible Arab: The Promise and Peril of the Arab Revolution Written By: Marwan Bishara Lilia Gomez INTL 5000 (Fall Semester) The book that I am reviewing is titled The Invisible Arab: The Promise and Peril of the Arab Revolution. It is written by a well-known political analyst named Marwan Bishara. Mr. Bishara works for the Al Jeezera (the primary news channel for the Arab world) as a Senior Political Analyst. The book is in the perspective of an Arab and not by someone within the Western media/culture. He writes about the Arab revolutions and the history behind it. Mr. Bishara debunks several thoughts of how the Arab revolutions started and how the media (both Arabic and Western) have played a major role within these causes. Mr. Bishara’ book is self-described as an essay in which he reflects on the history of the revolutions up until present and how social media and the Arab youth population played a part. He credits the youth of being able to over throw decade old customs, governments, and regimes. In addition, he describes the rise of many positive organizations that formed because of the revolutions such as women’s groups, sports teams, and a higher employment rate. Although he praises the rise of these types of organizations, Mr. Bishara faults the lack of organization and commitment to principles as the basis......

Words: 2097 - Pages: 9

The Hand

...At the beginning of the story, the wife regarded the hand with young love and pride. She was excited to be lying next to her newlywed husband and she enjoyed having his hand next to her. She felt mature and proud to be married at such a young age to a handsome young man. She was happy, excited, and surprised of her new status. But throughout the story, her attitude began to change. It started when she realized qualities of his hand that she hadn’t from the beginning. She noticed how big his hand is, how powerful his knuckles are and how unsmoothed out the ridges of his nail buffer was. Little by little, she begins to notice shocking details about the hand she thought she knew well. She began comparing the hand to one of an animal, or even worse, a beast. The wife’s description of the hand makes me think that she might be scared of him as she begins to observe his hands with horror and disgust. She changes my thoughts of how she views his hands with every nasty detail she lists about it. The way she describes her hands make me feel like the hand (or the husband) suggests authority and power over her, or even oppressiveness. When she says “Oh!” in paragraphs 16 and 20, it is because she has faced with something slightly indecent which makes her feel uncomfortable. She has noticed this big change of perspective which shocked her and which she did not like. She thinks to herself how she didn’t realize this before, the missed and ignored details which revealed the real man......

Words: 786 - Pages: 4

Invisible Barrier

...Gadmon Victor Gunardi Some people say that there are invisible barrier that stop women obtaining top job. I am both in favour and against the statement. I am going to write two arguments in favour and one argument why I against it in the following paragraph. Nowadays, many companies really strict about their employees position on their company. Some of them do not want women to take the top job on their company. I believe this condition is happen because of the women employees inside their company is already married, the company consider about the women condition, moreover if the women is already have a children that she has to take care of. Considering this thing, the company afraid that she cannot do her best efforts on their jobs because she has to divide her mind on her job and her children too in the same time. That is why the company does not want to promote women employees for the top job. The second argument is the company has a bias against women, they believe that men have more power to control the company. They think that women is more sentimental than men, in a bad situation, men’s mind is more calm and still under control, men does not include his own feeling to take a decision, men always think something base on fact. Different from men, women always use their feeling to take decision. The companies afraid that women depend on their feeling to take a decision not depend on the fact. That is why companies afraid to promote women to take the top job on......

Words: 404 - Pages: 2

Invisible Hand

...Invisible Hand Cheating and Punishment: Dealing with, and punishing companies who would price fix, during a natural disaster, or any time for that matter is a difficult task. The first task that would be needed to be completed would be to prove it, which can prove to be difficult with one company involved, let alone two large chains that are in a relatively stable market. The prices for certain goods that are sold by Lowes and the Home Depot tend to be relatively similar, and any discrepancies in price are usually made up by differences in the price of other goods. It is the nature of a market where only a few large chains dominate the market. The prisoner’s dilemma can be applied in this situation, where the Home Depot and Lowe’s could be in a position to set the market prices for their goods and go unchecked on the basis of a natural disaster and the inability to restock their goods in a timely manner to keep prices at normal levels. The manner in which these two companies could manipulate the prices could be deliberate, meaning both companies either colluded on the prices set or simply by accident. If someone were to raise concerns about price gouging during a natural disaster, Lowe’s and Home Depot may be able to hide behind power outages, flooding or other natural occurrences keeping supplies low, thereby raising prices, but will either company sell out their competition in hopes of saving face is the question. If they work together, they of course, can......

Words: 371 - Pages: 2

Evolutionary Change: the Invisible Hand and Money

...EVOLUTIONARY CHANGE: THE INVISIBLE HAND AND MONEY Instead of being designed by men, civilization has evolved, according to one view. Social institutions [government, the rule of law, the social division of labor connoting production activities, markets (credit, labor, commodities, etc.), money, languages, mores (morals and values), et. al.] are determined not simply by preceding causes but as part of a process of unconscious self-organization of a structure or a pattern. These social institutions spontaneously come into existence. They are complex and self-maintaining mass phenomena. Reinforcing this point, Adam Smith wrote in The Theory of Moral Sentiments that men aiming at the “gratification of their own vain and insatiable desires” are “led by an invisible hand” in such a way that they “without intending it, without knowing it, advance the interest of society and afford means for the multiplication of the species.” The Origin of Money Theory, formulated by economist Carl Menger, in 1871, provides an account of the evolution of the social institution of money. Money, according to the Theory, is not a creation of the state as many think it is today. Rather it came into existence spontaneously through an unconscious, self-organizing, self-maintaining, evolutionary process. An outline of the theory is presented below. A. The Seven Steps of Carl Menger’s Origin of Money Theory: * The seven (7) steps below explain the emergence of a commodity money like gold or silver in......

Words: 2436 - Pages: 10

Invisible

...Invisible (Hunter Hayes) Crowded hallways are the loneliest place For outcasts and rebel Or anyone who just dares to be different And you’ve been trying for so long To find where your place is But in their narrow minds There’s no room for anyone who dares to do something different Oh, listen for a minute (Chorus) Trust the one Who’s been where you are wishing all it was Was, sticks and stones Hear me out There so much more to life than what you’re feeling now Someday you’ll look back on all these days And all this pain is gonna be invisible Oh, invisible So, your confident is quite To them quite looks like weakness But you don’t have to fight it Cause you’re strong enough to win without a war Every heart has a rhythm Let your beat so loudly That everyone can hear it Yeah, i promise you don’t need to hide it anymore Oh, and never be afraid of doing something different Dare to be something more (Repeat Chorus expect the last part) (Bridge) These labels that they give you Just ‘cause they don’t understand If you look past these moment You’ll see you got a friend Waving a flag for who you are And all you’re gonna do Yeah, so here’s to you And here’s to anyone who ever fell invisible (Chorus) Yeah, and you’re not invisible Hear me out There so much more to life than what you’re feeling now And someday you’ll looks back on all these days And all these pain is gonna be invisible It’ll be invisible...

Words: 265 - Pages: 2

Vietnamese Water Puppetry

...(Foley, 2001, p. 130) Around eight-ten trained puppeteers stand behind a bamboo scrim controlling the brightly painted puppets. The slits in the scrim enable the puppeteers to make sure the puppet choreography is executed properly. It is interesting to observe how the water is kept dark and cloudy to conceal the puppetry techniques and deceive the audience into believing that the puppets are moving themselves. The stage has two doorways on each side- “the door of life” and the “door of death” from which puppets enter and exit respectively (Gaboriault, 2009). Each scene tells a different story, however eventually some if not all scenes connect with each other by a common theme (Gaboriault, 2009, p. 31). All Mua Rồi Nước scenes are based on Vietnamese folk tales that contain one or more morals and values. The scene Avoid Stealing Antique Objects is based on the folk tale The Toad Sues Heaven. “In this scene, village members are gathering near the water to clean Buddha’s statue, however, under the cover of darkness, a thief steals Bodhisattva Kwan Yin’s statue. Chủ Tếu and a group of animals search for the statue to no avail. Pleading for help, the toad asks the kitchen God to tell the Jade Emperor what has happened. The Emperor sends a fairy with a magical telescope and statue is retrieved.” (Gaboriault, 2009, p. 40). The puppet Chủ Tếu appears universally throughout almost all performances. He is seen as a kind of comic master of ceremonies, commenting on stories, on......

Words: 2959 - Pages: 12

Adam Smith Invisible Hand

... STUDY QUESTIONS “ADAM SMITH’S INVISIBLE HAND ARGUMENT> JOHN D. BISHOP 1. Briefly state the “invisible hand” theory in your own words. The “invisible hand” is a term used by Adam Smith to describe the natural force that guides free market capitalism through competition for scarce resources. The theory of the Invisible Hand states that if each consumer is allowed to choose freely what to buy and each producer is allowed to choose freely what to sell and how to produce it, the market will settle on a product distribution and prices that are beneficial to all the individual members of a community. 2. Two advocates of the “invisible hand” theory who are quoted in the article encourage a “deliberate amorality” in the executive suite. How do they justify this? They contend that this results in systemic morality due to the action of the invisible hand. 3. What does Milton Friedman see as the social responsibility of corporations? Milton Friedman is quoted saying, "There is one and only one social responsibility of business -- to use it resources and engage in activities designed to increase its profits so long as it stays within the rules of the game, which is to say, engages in open and free competition without deception or fraud." Friedman argues that corporations have no social responsibility, only a responsibility toward their customers and shareholders to maximize profits. 4. According to Bishop, what does Adam Smith say about laws or regulations......

Words: 506 - Pages: 3

Invisible Hand

...the term of “Invisible Hand“ stand for? What are the real consequences and premises of “Invisible Hand”? Introduction In Adam Smith’s conception, it is the ‘invisible hand’ of the free market that organizes the seemingly chaotic and self-interested activities of human beings into a beneficent and industrious social order. The conception tries to describe “Self – regulating nature of market” based on natural inclination of human-being. Unplanned, unintended actions coined with natural inclination of self-interest channels ambitions towards meeting social necessities. The main motto of the argument was that the market freely will lead to perfect equality. Actually, perfect competitive market fundamentalism was bulwarked with “Invisible hand”. It is very arguable and ambiguous that why Adam Smith called this sort of regulation “invisible hand”. Cognitively, it is tangible but in terms of understanding of special mechanism is very incomprehensible and too invisible to put forward as a market regulatory factor. Self-interest as a part of human nature took a role of supervisor and established “self-regulatory nature of marketplace”. Diving into deep comprehension of the term of invisible hand, we can see that the term implies decentralization of the wealth among inhabitants. We can face with the term of “invisible hand” in his previous work called “The Theory of Moral Sentiments” which envisages the natural propensity of human-being: “They are led by an invisible hand to make......

Words: 1428 - Pages: 6

Invisible Cloak

...Background The desire to make objects or people invisible has a long history: to this end, many different devices have been imagined. However, it is only in relatively modern times that these plans have begun to move from fiction to reality. The recent development of metamaterials and the new design of optical lens have made accessible and opened up new possibilities for invisibility, the most promising of which are described in this article. To be invisible in the conventional sense is to be undetectable to electromagnetic radiation within a given frequency range; light must not be scattered or absorbed. An immediate and unfortunate consequence of this requirement is that an invisible person must also necessarily be blind. In many applications, partial invisibility is sufficient. Hence, with all these kind of technology, metamaterials and optic lenses will provide the human being a wide range of new applications device and new systems whether in military sector or in automotive system such as, in Keio University, Tokyo for instance, enable the back seat driver to become invisible whenever the driver is moving backward (Gbur,2013) or when a jet fighter falls down in enemy terrain, the pilot could seek a hide with the help of Quantum Stealth (invisible cloak) made by the Canadian company (Cramer,2012). Purpose and Audience The purpose of this paper is to study the materials used in invisible cloak and any related information regarding......

Words: 1399 - Pages: 6

Capitalism and Invisible Hand

...Capitalism & the Invisible Hand Throughout the history of civilization have been two forms of social administrations: Individualism which has taken the form of capitalism and collectivism which has taken many different forms, each form different from one another, such as socialism, communism, nazism, and etc. Capitalism is an economic system in which most of the means of production and distribution, such as businesses or factories, are not owned by the government but by the private individuals who operate them for profits. (“13b. Comparing Economic Systems.”) In the center of the free-market capitalism is the individual who has four basic rights: • The right to own private property. • The right to own a business and to keep the profits made by operating his business. • The right to freedom of competition. • The right of freedom of choice. (Nickels, Understanding Business) On the other hand, socialism is an economic system that calls for putting most of the means of production in the hands of government which will share the wealth and income more equally among people.( Nickels, Understanding Business) The main goal of socialism is to narrow the gap between the rich and the poor. Thus, the government has the responsibility to evenly distribute the wealth in order to make the society just and fair. (“13b. Comparing Economic Systems.”) An individual attempts to become wealthy, which explains why his focus is only on profits, but to achieve this goal he has to......

Words: 974 - Pages: 4

Invisible Man

...Desired Lonesomeness Ellison’s Invisible Man demonstrates an unlikely parallel between ignorant blindness and undesirable invisibility as a result of IM’s lonesomeness. Suffering mistreatment from all authoritative figures that he encounters on his path to find stability, IM undergoes many mistreatments that lead to a suppressed and unmotivated journey. In this we see that lonesomeness can bring disempowerment, but also freedom and mobility in order to disconnect from consistently unfaithful leaders. IM’s experience with exile is both alienating and enriching amongst many social circumstances. The Brotherhood plays a major role in IM’s timid and respectful behavior toward authoritative figures and helping him to mature into acceptance toward fair and deserved treatment. In the Brotherhood, IM is given a glimpse of inclusive hope, being a replacement for an absence of home that was left behind at college. The Brotherhood helps IM to grow and strengthen himself within the truths of his lonesomeness. He has been blind to the selfless demeanors of the Brotherhood, only to leave him on his own to discover the worthlessness of their mistreatments. Due to the Brotherhood blindly avoiding the truth of their motives, IM is able to discover the “bond” that is meant to make the Brotherhood a family. IM continuously searches for a meaningful and permanent bond within the many figures he is acquainted with. This alienating experience leaves IM vulnerable to the identities......

Words: 384 - Pages: 2

The Invisible Hand Versus the Hand of the Government

...Riko F. Business, Government & the International Economy Week 3 Assignment Facilitator ----- 13 May 2016 * The invisible hand versus the hand of the government The invisible hand theory is a concept described by Adam Smith in the 18th century to explain the forces of a free market. The theory explains without government controls people pursing their own interest promotes to the good of society better than controlled measured by the Government(Ecocommerce101,n.d.). People acting in their own self-interests generates a higher demand for goods and service that compels others to deliver those good and service in the most efficient manner so they are able to compete in the market(EconomyProfessor,n.d). Who is Adam smith? Adam Smith was as Philosopher and Economist whose book “Wealth of the Nation” is considered one of the most influential books ever written. Smith was born in Scotland on 16th June 1723 and at the young age of fourteen, he attended University of Glasgow on a scholarship and later graduated from Balliol College at Oxford. Smith was known as the father of economics and deeply influenced the political powers of the day with his theory that no external interference should be in the economic markets because it will only lead to chaos and disaster. Adam’s book the Wealth of the Nation was published in 1776(EconomyProfessor,n.d). Smith was appointed the commissioner of customs in 1778 which he helped enforce the laws against smuggling but he in his...

Words: 486 - Pages: 2

Hands

...Pam Butusov Midterm 1160 Section A. Number One. The short story “Hands” written by author Sherwood Anderson is a story about a former school teacher named Wing Biddlebaum, with a troubled past. The story is narrated by his friend George. Wing, you see, has no control over the nervous movement of his hands. This has been a source of embarrassment for him since he relocated to the small conservative town he lives in. In an earlier part of his life, Wing taught at an all-boys school. He was gentle man, touched the boys shoulders and hair. This turned out to be misconstrued by one of the boys. The boy had dreams about his teacher and himself. When he told his father, he searched Wing out and beat him up. Is he a child molester is left to interpretation. After the beating from the father, Wing decided that his hands were the offending part. He started fidgeting them and never stopped until one day he was having a lively conversation with George about dreaming and thinking of more than the narrow minded town allowed. Wing touched George for the first time ever. Wing was completely freaked out by this and ran away in horror. Okay, but can you clearly identify the climax? What is the resolution? 20 Section B. Number 3. The theme of "A Rose for Emily" by William Faulkner is that people should let go of the past, and live in the present. Our first evidence is Emily lived in the past in her very old house, which she didn’t think she had to pay property taxes on. Second, she...

Words: 840 - Pages: 4