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# Corn Exportation Prohibition

## Definition

Legal restrictions on the export of grain without special license, representing a mercantilist policy that Smith argues prevented agricultural regions from capitalizing on their comparative advantages and contributed to the economic decline of naturally fertile areas like ancient Italy.

## Source Chapter

Book III, Chapter 2

## Context

Smith presents this prohibition as part of the broader pattern of agricultural discouragement in medieval Europe, arguing that preventing farmers from selling their surplus in foreign markets eliminated incentives for surplus production and kept agricultural regions economically isolated and underdeveloped.

## Economic Domain

Regulation

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