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# Mutual Gain Reciprocity

## Definition

The economic principle that both town and country benefit equally from their commercial exchange, with neither party losing from the relationship. This reciprocity arises from the division of labour that allows each party to specialize in what they produce most efficiently, creating mutual advantages rather than competitive losses.

## Source Chapter

Book III, Chapter 1

## Context

Smith emphasizes this principle to counter mercantilist ideas about trade as a zero-sum game, demonstrating through the town-country relationship how commercial exchange creates net gains for all participants through specialization and division of labour.

## Economic Domain

Exchange

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