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# Disadvantageous Balance Trade Restraints

## Definition

The trade restrictions imposed on countries with which a nation supposedly has an unfavourable balance of trade, including higher tariffs, quotas, and prohibitions designed to reduce imports from those specific countries and protect domestic industries.

## Source Chapter

Book IV, Chapter 3

## Context

Smith argues these restraints are based on false economic reasoning, demonstrating that trade with countries where the balance appears unfavourable can still be beneficial if their goods are cheaper or better than alternatives.

## Economic Domain

Regulation

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