Which of the following is an example of Adam Smith's view of the business world?
A)A small local store treats its workers well to preserve the goodwill of the community.
B)A U.S.-based manufacturing company opens a plant in a developing country to save labor costs.
C)A multinational corporation ignores its environmental issues in Asia because its consumers are in Europe.
D)A business fails to pay its workers adequately because, despite complaints from the workers, lower pay is more profitable.

Question

Quizplus · Accepted Answer

Adam Smith believed that businesses should act in their own self-interest, but also recognized the importance of maintaining relationships with workers and the community. A small local store treating its workers well to preserve goodwill aligns with Smith's views on the role of businesses in society. The other choices involve actions that prioritize profits over ethical or social considerations and do not align with Smith's philosophy.

Which of the Following Is an Example of Adam Smith's