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Through trade and the establishment of colonies, this was accomplished and further provided a source of reliable raw materials.
Adam Smith defined the factors of production as land, labor and capital. He also said that the economy was made up of individual transactions, and buyers and sellers were looking out for their own self-interest, which was the driving force of every economy. Smith posed the idea of competition as well, and the "Invisible Hand" theory which dealt with competition, self-interest and protecting the consumer from government intervention.
Karl Marx also had some important views...
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