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# National Animosity in Trade Policy

## Definition

The influence of political hostility and national rivalries on commercial regulations, often resulting in trade restrictions and retaliatory measures that harm economic efficiency. This phenomenon can lead to policies that prioritize political objectives over economic welfare.

## Source Chapter

Book IV, Chapter 2

## Context

Smith discusses how the Navigation Act of 1651 was influenced by animosity between England and Holland, noting that while such policies may serve political purposes, they often have negative economic consequences. He argues that trade restrictions based on national animosity typically harm both parties involved.

## Economic Domain

Regulation

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