<!-- generated: provider=openrouter model=arcee-ai/trinity-large-preview:free date=2026-02-19 source=book-4-chapter-05 -->

# Environmental Scanning

# Definition

The systematic monitoring of external economic conditions, market trends,
and competitive forces to inform strategic decision-making and policy
development in response to changing circumstances.

## Source Chapter

Book IV, Chapter 5

## Context

Smith's analysis of how bounties affect different market conditions and
seasonal variations reflects the importance of environmental scanning in
understanding the complex effects of economic policies.

## Economic Domain

General Theory

---
