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# National Prejudice in Trade

## Definition

The bias in commercial policy that favours domestic producers and restricts foreign competition based on nationalistic rather than economic considerations. This prejudice leads to inefficient resource allocation and reduced national wealth.

## Source Chapter

Book IV, Chapter 6

## Context

Smith identifies national prejudice as a key driver of protectionist policies and commercial restrictions, arguing that these policies harm rather than help national economic interests.

## Economic Domain

Regulation

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