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# Smuggling

## Definition

The illegal importation or exportation of goods to avoid customs duties or
prohibitions, often becoming a major channel for trade when legal restrictions
are too severe.

## Source Chapter

Book IV, Chapter 5

## Context

Smith discusses how prohibitions on gold and silver export in Spain and
Portugal create smuggling opportunities and raise the value of precious
metals in other countries, harming the prohibiting nations.

## Economic Domain

Exchange

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