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# Colony Economic System Design

## Definition

The intentional structuring of colonial economic arrangements by metropolitan
authorities, which Smith criticizes as often being based on mercantilist
principles that do not reflect the actual economic conditions of colonies.

## Source Chapter

Book V, Chapter 3

## Context

Smith critiques the design of colonial economic systems by British authorities,
arguing that they are based on outdated mercantilist principles rather than
sound economic reasoning.

## Economic Domain

Regulation

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