<!-- generated: provider=openrouter model=arcee-ai/trinity-large-preview:free date=2026-02-19 source=book-4-chapter-07 -->

# Colonial Economic System Transformation

## Definition

The process of changing from restrictive monopoly-based colonial management to more open economic arrangements that allow greater freedom and market access. Such transformations can significantly improve economic outcomes for both colonies and the mother country.

## Source Chapter

Book IV, Chapter 7

## Context

Smith advocates for transforming colonial economic systems from monopoly-based to more open arrangements, arguing that such changes would produce substantial benefits. He presents this transformation as both economically advantageous and politically necessary for long-term stability.

## Economic Domain

Regulation

---
