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# Human Folly Injustice Exposure

## Definition

The vulnerability of foreign trade to losses from human error, dishonesty, and legal injustices that cannot be easily controlled or predicted by merchants. This exposure makes foreign trade the least secure form of capital employment, contributing to the natural preference for agricultural and manufacturing investments over international commerce.

## Source Chapter

Book III, Chapter 1

## Context

Smith identifies this as a key factor in the security gradient that influences capital allocation decisions, explaining why merchants face greater risks than landowners or manufacturers and why this risk differential shapes the natural order of economic development.

## Economic Domain

Accumulation

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