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# Commercial Policy of England

## Definition

The systematic approach to international trade that emphasizes the pursuit of favourable balances of trade through commercial treaties, colonial monopolies, and trade restrictions. This policy is based on mercantilist principles that Smith critiques as economically inefficient.

## Source Chapter

Book IV, Chapter 6

## Context

Smith critiques England's commercial policy as being based on flawed mercantilist principles. He argues that the pursuit of favourable trade balances through monopolistic arrangements actually reduces national wealth rather than increasing it, as the policy's proponents claim.

## Economic Domain

Regulation

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