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# Colony Economic System Purpose

## Definition

The fundamental reason for establishing and maintaining colonial economic
arrangements, which Smith argues should be mutual benefit rather than the
enrichment of the mother country at the expense of the colonies.

## Source Chapter

Book V, Chapter 3

## Context

Smith discusses the proper purpose of colonial economic systems, arguing that
they should aim for mutual benefit rather than the one-sided advantage that
has characterized much colonial policy.

## Economic Domain

Regulation

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