# Economic Geography Impact

## Definition

The effects that geographical features have on economic development patterns, market formation, and the division of labour. Economic geography impact explains why certain regions develop industry and specialisation while others remain at subsistence levels.

## Source Chapter

Book I, Chapter 3

## Context

Smith's entire analysis demonstrates economic geography impact: how coastlines enable maritime commerce, navigable rivers create inland markets, frozen oceans prevent trade, and distant rivers limit economic development, showing the powerful influence of geography on economic organisation.

## Economic Domain

General Theory

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