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

# Colonial Economic System Coordination

## Definition

The mechanisms through which different economic activities in colonies are aligned and integrated, including market relationships, production planning, and trade flows. Better coordination through market mechanisms typically produces more efficient outcomes than central planning.

## Source Chapter

Book IV, Chapter 7

## Context

Smith argues that market mechanisms provide superior coordination compared to monopoly control, allowing economic activities to align naturally according to comparative advantages and consumer demands. He contends that this coordination produces more efficient outcomes.

## Economic Domain

Exchange

---
