How Does Adam Smith's Idea of the "Invisible Hand" Apply

question 73

Essay

How does Adam Smith's idea of the "invisible hand" apply to the various parts, made by many different manufacturers in many different countries, that are used by Apple to produce an iPad?

---

Definitions:

Ignoring Income Taxes

Refers to the accounting practice or principle where income taxes are not considered in the calculation of financial metrics or performance evaluations.

Deferred Tax Asset

A tax reduction amount that can be used to offset future taxable income, arising from temporary differences between book and tax income.

Deferred Tax Liability

This is a tax obligation due in the future for income that has already been recognized in the financial statements.

Carrying Values

The book value of assets and liabilities as reported on the balance sheet, accounting for depreciation, amortization, and impairment.