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# Colonial Market Expansion

## Definition

The growth of commercial opportunities created by colonial development, including new markets for manufactured goods and sources of raw materials. This expansion increases the overall size of the economic system and creates new opportunities for productive employment.

## Source Chapter

Book IV, Chapter 7

## Context

Smith argues that colonial market expansion represents one of the primary benefits of colonization, creating larger markets that support greater division of labor and more efficient production. He contends that monopoly restrictions artificially limit this beneficial expansion.

## Economic Domain

Exchange

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