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# Direct Foreign Trade of Consumption

## Definition

A trade pattern where a country directly exchanges its own products for the products it desires from another country, without intermediate transactions through third parties or the use of precious metals as intermediaries.

## Source Chapter

Book IV, Chapter 3

## Context

Smith presents this as the most advantageous form of trade, arguing that England would benefit more from directly exchanging its hardware and cloth for French wines than through round-about routes involving tobacco or precious metals.

## Economic Domain

Exchange

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