# Market Development Prerequisites

## Definition

The necessary conditions for markets to develop and support division of labour, including adequate transportation infrastructure, security for trade, political stability, and sufficient population density. Market development prerequisites determine where and when economic specialisation can occur.

## Source Chapter

Book I, Chapter 3

## Context

Smith identifies several market development prerequisites: navigable waterways or coastal access for water-carriage, political arrangements that don't obstruct trade, and sufficient population to create demand for specialised goods and services.

## Economic Domain

Exchange

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