Enterprise Credit Management Practice

Author: Tan Yongzhi
Publisher:
Publish Date: 2004-01-01
Features: Credit is very important in the market economy, especially in our socialist market economy. Adam Smith, in The Wealth of Nations, starts with the chapter on the great driving force behind the progress of a market economy being the division of labor. He argues that the finer the division of labor, the faster the improvement in efficiency. He gives an example: without the division of labor, a craftsman would find it very difficult to produce a single needle in a day. However, in his time during the 18th century, if the production of this needle was divided into ten processes, with each worker doing only one process, efficiency would increase. There is a reason behind the improvement in efficiency, which should come from two aspects: on the one hand, the simpler the process, the more skillful it becomes through practice.