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# Home Trade

## Definition

The trade conducted within a single country, purchasing goods in one part of the country and selling them in another part. Home trade includes both inland trade between regions and coasting trade along waterways, facilitating the internal distribution of goods produced within the national economy.

## Source Chapter

Book II, Chapter 5

## Context

Smith identifies home trade as the most beneficial form of trade for a country, arguing that it replaces two distinct capitals employed in domestic industry with each transaction. He emphasizes that home trade provides the greatest encouragement to productive labour within the country.

## Economic Domain

Exchange

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