Economic geniuses!! “The division of labor is limited by the extent of the market......”?

Question

Adam Smith, The Wealth of the Nations.

what does he mean by this, "the extent of the market"

also what does this have to do with our step towards globalization. Do you think government should be involved in any way?

Answer 1

the extent of the market means producers will not produce more than they can sell at a maximum profit.

This to do with globalisation because one or a few producers are satisfying all demand and therefore control labour. Govt should remain nuteral because they are interfering with market conditions if they intervene Keynsian view there are other vailid views - see any Economics Textbook

Answer 2

If you are only selling one car per year, there isn't much need for a division of labor.  You might as well have one worker do the whole thing.  He has a year to get it done.  If the market for cars is 365 cars, then 1 man can't build a car a day.  The "extent" of the market makes it possible for more workers to be hired.  They could all learn to make an entire car in 365 days or they could each do 1 thing on all 365 cars.