“Adam Smith, in the Wealth of Nations, and Karl Marx, in Das Kapital, have made it clear that the economic growth of a nation depends mainly on two elements, capital and labor, which are the main inputs into the economic ecosystem of a nation. “Then came Robert Solo, who explained in his many articles the importance of the missing element from the previous equation: technology and innovation, which he called “technical progress.” Professor Solo of Massachusetts Institute of Technology received the Nobel Prize in 1987 in economic sciences. He made it clear that the economic outputs of an economic system through innovation (the new capital) are more productive and of higher value than other types of output.
In order to link things together, we return to what Thomas Friedman presented in his book, The World is Flat and the theory of the third globalization. Through changes in the complex global supply chain over the past few decades, the “United States of America has developed a strategy to keep generating IP products and shifting services and manufacturing to other countries, such as China, India, and Mexico. Some western European countries have followed suit. Many American products are not produced inside America, even though they are American innovations and designs. For example, Chevrolet and Chrysler cars are made in Mexico. Apple iPhones are manufactured in China. Ray-Ban glasses are designed at the headquarters of the American company and manufactured in Italy and China. Many American tire factories manufacture their products in Russia and Mexico.”
Excerpt From
Research Sub-Contractor x version
MOHAMMED AHMAD S. AL-SHAMSI
This material may be protected by copyright.”
Excerpt From
Research Sub-Contractor x version
MOHAMMED AHMAD S. AL-SHAMSI
This material may be protected by copyright.”
Excerpt From
Research Sub-Contractor x version
MOHAMMED AHMAD S. AL-SHAMSI
This material may be protected by copyright.
