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# Foreign Trade Enrichment Mechanism

## Definition

The process by which international commerce increases national wealth through the exchange of surplus domestic production for desired foreign goods, creating value by matching what each country produces efficiently with what it needs but cannot produce as advantageously.

## Source Chapter

Book IV, Chapter 1

## Context

Smith argues that foreign trade enriches nations not by bringing in precious metals, but by allowing countries to specialize according to their advantages and exchange surpluses. He emphasizes that the real benefit comes from access to a larger market and the division of labour it enables, not from the mere movement of bullion.

## Economic Domain

Exchange

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