II. Complete the open dialogue and learn it by heart

K.	…
O.	Frankly strictly the importance of the office is obvious. It is the hub of the communications network for the whole organization.
K.	…
O.	The matter is that technology affects the whole of business, not least the office, and the concept of a completely paperless office is beginning to emerge.
K.	…
O.	In my opinion whatever happens as a result of the new technologies, the role of the office will be changed rather than diminished.
K.	…
O.	To my mind these changes will affect a large number of people.
K.	…
O.	On the contrary, the introduction of robotic production lines in factories and new technology in offices will change the way men and women work, and the roles they expect to fulfil.
K.	…
O.	As far as I am concerned there have already been great changes in the tradi­tional patterns of employment due to new technology, and this seems likely to continue.
K.	…
O.	I don't think so. As far as I know most office workers of the future will find themselves seated at multi-function work stations able to exercise control over routine purchases, sales, market research, production runs and accounting procedures.
K.	…
O.	To make a long story short we can expect a cen­tralisation of decision-making powers, with the office becoming even more emphatically the very hub of the business.

UNIT 8

ADAM SMITH’S THEORY

BEFORE YOU READ

Answer these questions

1. Do you know what Adam Smith was? Why does he remain a towering figure in the history of economic thought?

2. Do you agree that like so many ideas which have earth-shatter­ing effects, his was a disarmingly simple notion? Why?

READING TASKS

A. Understanding main points

Read the text below about factory production and answer these questions, beginning your answers with the fol­lowing phrases: as a rule …; to tell the truth …; as far as I know …; the matter is that …; as far as I remember …; as far as I am concerned …; frankly/strictly speak­ing …; to make a long story short …

1. When did Adam Smith introduce some ideas which were to bring about a world revolution?

2. Why do we owe much to this Scottish economist and philosopher?

3. What did he pay attention to watching workers practising their craft of pin making?

4. What technique did Smith identify as the source of the greatest improvement in the productive powers of labour?

5. What helped Smith convince the world that specialization could solve the problems of poverty and want?

6. What were new technologies being invented and applied to?

7. What were the fruits of the division of labour limited by?

8. What made Britain the richest country in the world in the nineteenth century?

9. What have these tech­niques brought the population of the country?

10. What do you understand by the term 'robotic production lines'?

B. Understanding details

Mark these statements T (true) or F (false) according to the information in the text. Give your reason using the fol­lowing phrases: as a matter of fact ...; I don't think so …; I'm of the same opinion …; in my opinion …; on the contrary …; strictly speaking ...; to my mind ...

1. Over a century ago, Adam Smith introduced some ideas which were to bring about a world revolution.

2. We owe much to this Scottish economist and philosopher.

3. Adam Smith's contribution, which had an earth-shatter­ing effect, was a very complicated notion.

4. Adam Smith de­scribed the technique as the Division of Labour, whereby workers perform short work-cy­cles, repeating the same actions again and again and again.

5. Smith couldn’t convince the world that specialization could solve the problems of poverty and want.

6. Specialization became the order of the day but productivity was not increased to an incredible degree.

7. For Britain, where the revolution started, there was an upsurge in prosperity which made it the richest country in the nine­teenth century world.

8. British ships - built of iron and steel — were never used to carry the new bountiful cargoes to every corner of the world.

9. Everywhere, factories producing large numbers of more or less identical units are in con­tinuous production.

10. What are called mass-production lines today were called robotic production lines yesterday.

FACTORY PRODUCTION

Over two hundred years ago, Adam Smith introduced some ideas which were to bring about a world revolution. If we enjoy a high standard of living in modern society, we owe much to this Scottish economist and philosopher. If we enjoy driving in sleek motor cars, wearing fashionable shoes, or flying away to distant places for exciting holidays, we should perhaps give an occasional vote of thanks to the man who made it all possible.

After two centuries, Adam Smith remains a towering figure in the history of economic thought. Although he was writing for his generation, the breadth of his knowledge, the cutting edge of his generalization, the boldness of his vision, have never ceased to attract the admiration of all social scientists, and in particular economists. Couched in the spacious, cadenced prose of his period, rich in imagery and crowded with life, he projected a sanguine but never sentimental image of society.

Like so many ideas which have earth-shatter­ing effects, his was a disarmingly simple notion. He wanted to understand the sources of economic wealth, and he brought his acute powers of observation and abstraction to bear on this question. He watched workers practising their craft of pin making. One man would heat the strip of metal, stretch it out, cut off an appropriate length, shape it, cool it and finally smooth and shine it. Smith drew attention to the ad­vantages which could be gained if these various tasks were performed by different work­ers. Let one be responsible for keeping the brazier glowing and preparing the metal, another for stretching and cutting, another for shaping and another for finishing. He de­scribed the technique as the division of labour, whereby workers perform short work-cy­cles, repeating the same actions again and again and again. Smith identified the division of labour as the source of the greatest improvement in the productive powers of labour. The division of labour became even more productive when applied to creating new technologies. He convinced the world that specialization could solve the problems of poverty and want.

The importance of an appropriate division of labour was underlined in the opening sentence of Adam Smith’s classic text in political economy “The Wealth of Nations”: “The greatest improvement in the productive powers of labour 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 labour.” The result of it was the Industrial Revolution and specialization became the order of the day. New technologies were being invented and applied to the manufacture of cotton and wool, iron, transportation and agriculture. Productivity was increased to an incredible degree. But Smith thought that the fruits of the division of labour are limited by the extent of the market. To make the market as large as possible, there must be no impediments to free trade both within a country and among countries. He argued that when each person makes the best possible economic choice based on self-interest, that choice leads as if by an invisible hand to the best outcome for society as a whole.

For Britain, where the revolution started, there was an upsurge in prosperity which made it the richest country in the nine­teenth century world. British trains – and railway lines – spread out like a spider's web across the world, opening up the great continents of America, Asia, Africa and Australasia. British ships – built of iron and steel — were used to carry the new bountiful cargoes, including human beings from every corner of the world, to every corner of the world.

The pace of change is increasing. And if these tech­niques have brought Britain prosperity, they have also brought the population of the country a trail of misery in over­crowded towns, boring jobs and, worst of all, unemployment. The revolution is not over. It is still with us, but now it is a worldwide phenomenon. Scientists and engineers, trained in extremely narrow fields, became specialists in inventing. Their powerful skills speeded the advance of technology. Machines started performing repetitive operations faster, and more accurately than people. Everywhere, factories producing large numbers of more or less identical units are in con­tinuous production. What were called mass-production lines yesterday are called robotic production lines today.