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# Natural Order of Economic Development

## Definition

The sequential progression of capital allocation from agriculture to manufacturing to foreign commerce, driven by the natural preferences and security considerations of capital owners. This order reflects the relative security of different investments, with land improvement being most secure and foreign trade least secure, as well as the logical necessity of agricultural surplus preceding urban manufacturing.

## Source Chapter

Book III, Chapter 1

## Context

Smith argues this natural progression occurs in every society with territory, explaining why towns historically develop after agricultural improvement and why capital owners prefer land investment over manufacturing or foreign trade when given equal profit opportunities.

## Economic Domain

General Theory

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