---
entity_slug: foreign_market
evaluator: null
evaluated_at: '2026-02-23T05:29:50.743305'
overall_score: 4.4
scores:
- name: definition_precision
  value: 4.0
  max_value: 5.0
  rationale: The definition clearly distinguishes foreign markets from domestic markets
    by emphasizing location (outside borders), participants (domestic producers selling
    to foreign buyers), and distinctive characteristics (different competitive conditions
    and trade regulations). It avoids circularity and captures a distinct economic
    concept.
- name: source_grounding
  value: 5.0
  max_value: 5.0
  rationale: This entity is directly grounded in Smith's analysis in Book IV, Chapter
    5, where he explicitly discusses how bounties affect foreign versus home markets
    and examines the competitive dynamics between domestic and international trade.
    The concept emerges naturally from Smith's comparative analysis of market types.
- name: domain_placement
  value: 5.0
  max_value: 5.0
  rationale: The "Exchange" domain is perfectly appropriate since foreign markets
    are fundamentally about the exchange of goods across national boundaries. This
    placement correctly captures the entity's role in international trade and cross-border
    economic transactions.
- name: vsm_relevance
  value: 4.0
  max_value: 5.0
  rationale: Foreign markets map well to S4 (intelligence/environmental adaptation)
    as they represent external environmental conditions that require monitoring and
    strategic response. They also connect to S1 (operations) as actual venues for
    commercial activity, giving this entity clear VSM relevance.
- name: explanatory_value
  value: 4.0
  max_value: 5.0
  rationale: This entity provides significant explanatory power by illuminating the
    structural mechanism of how bounties distort resource allocation between domestic
    and international markets. It helps explain Smith's argument about the artificial
    expansion of foreign trade at the expense of natural market development.
---

# Evaluation: Foreign Market

## definition_precision — 4.0 / 5.0

The definition clearly distinguishes foreign markets from domestic markets by emphasizing location (outside borders), participants (domestic producers selling to foreign buyers), and distinctive characteristics (different competitive conditions and trade regulations). It avoids circularity and captures a distinct economic concept.

## source_grounding — 5.0 / 5.0

This entity is directly grounded in Smith's analysis in Book IV, Chapter 5, where he explicitly discusses how bounties affect foreign versus home markets and examines the competitive dynamics between domestic and international trade. The concept emerges naturally from Smith's comparative analysis of market types.

## domain_placement — 5.0 / 5.0

The "Exchange" domain is perfectly appropriate since foreign markets are fundamentally about the exchange of goods across national boundaries. This placement correctly captures the entity's role in international trade and cross-border economic transactions.

## vsm_relevance — 4.0 / 5.0

Foreign markets map well to S4 (intelligence/environmental adaptation) as they represent external environmental conditions that require monitoring and strategic response. They also connect to S1 (operations) as actual venues for commercial activity, giving this entity clear VSM relevance.

## explanatory_value — 4.0 / 5.0

This entity provides significant explanatory power by illuminating the structural mechanism of how bounties distort resource allocation between domestic and international markets. It helps explain Smith's argument about the artificial expansion of foreign trade at the expense of natural market development.
