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# Capital Security Preference

## Definition

The tendency of capital owners to prefer investments that offer greater security and control over those with higher risk, specifically favoring land improvement over manufacturing and manufacturing over foreign trade. This preference stems from the ability to directly oversee land investments, the reduced exposure to accidents and injustices compared to trade, and the inherent security of fixed capital in land improvement.

## Source Chapter

Book III, Chapter 1

## Context

This concept explains why capital naturally flows toward agriculture before manufacturing and manufacturing before foreign trade, forming the basis for Smith's argument about the natural order of economic development and the security advantages of different forms of capital employment.

## Economic Domain

Accumulation

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