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# Foreign Sale Encouragement

## Definition

Government policies and incentives designed to promote the export of domestic goods beyond national borders. These encouragements include various mechanisms such as drawbacks, bounties, and preferential trade terms that aim to make domestic products more competitive in international markets and expand the reach of domestic producers.

## Source Chapter

Book IV, Chapter 4

## Context

The chapter identifies foreign sale encouragement as the second major objective of merchants and manufacturers after securing their home market monopoly. Smith examines how different encouragement mechanisms function, ultimately arguing that drawbacks represent the most economically rational approach because they do not artificially redirect capital but merely remove barriers to natural market forces.

## Economic Domain

Exchange

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