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# Prohibition of Exportation

## Definition

Government bans on the export of certain goods, particularly raw materials and production inputs, intended to ensure domestic availability and lower costs for local manufacturers. These prohibitions aim to give domestic producers advantages over foreign competitors but often reduce overall economic efficiency.

## Source Chapter

Book IV, Chapter 8

## Context

Smith analyses how export prohibitions on materials like wool and raw hides are designed to benefit domestic manufacturers by ensuring cheap inputs. He argues that these restrictions ultimately harm the broader economy by preventing the natural development of comparative advantages and international trade.

## Economic Domain

Regulation

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