---
entity_slug: commercial_system_transformation
evaluator: null
evaluated_at: '2026-02-23T05:00:17.791888'
overall_score: 4.6
scores:
- name: definition_precision
  value: 4.0
  max_value: 5.0
  rationale: The definition clearly distinguishes between mercantilist policies (government
    regulation, precious metal accumulation) and free market principles (voluntary
    exchange, competition). It captures a specific transformational concept rather
    than being vague, though it could be slightly more precise about the mechanisms
    of transformation.
- name: source_grounding
  value: 5.0
  max_value: 5.0
  rationale: This entity is directly grounded in Smith's actual arguments in Book
    IV, Chapter 6, where he explicitly critiques the mercantile system and advocates
    for free market principles. The concept of transformation from mercantilism to
    free markets is central to Smith's thesis in The Wealth of Nations.
- name: domain_placement
  value: 5.0
  max_value: 5.0
  rationale: '"General Theory" is the appropriate domain placement since this represents
    Smith''s overarching theoretical framework for economic transformation. This is
    a foundational theoretical concept that spans multiple specific economic mechanisms
    and policies.'
- name: vsm_relevance
  value: 4.0
  max_value: 5.0
  rationale: This entity maps well to S4 (intelligence/environmental adaptation) as
    it represents a systemic response to changing economic understanding and environmental
    conditions. It also relates to S5 (identity/policy) as it involves fundamental
    shifts in economic policy orientation and national economic identity.
- name: explanatory_value
  value: 5.0
  max_value: 5.0
  rationale: This entity provides significant explanatory power by illuminating the
    structural mechanism of how economies can transition from one organizing principle
    (mercantilism) to another (free markets). It explains both the process and rationale
    for fundamental economic system change that Smith advocates throughout his work.
---

# Evaluation: Commercial System Transformation

## definition_precision — 4.0 / 5.0

The definition clearly distinguishes between mercantilist policies (government regulation, precious metal accumulation) and free market principles (voluntary exchange, competition). It captures a specific transformational concept rather than being vague, though it could be slightly more precise about the mechanisms of transformation.

## source_grounding — 5.0 / 5.0

This entity is directly grounded in Smith's actual arguments in Book IV, Chapter 6, where he explicitly critiques the mercantile system and advocates for free market principles. The concept of transformation from mercantilism to free markets is central to Smith's thesis in The Wealth of Nations.

## domain_placement — 5.0 / 5.0

"General Theory" is the appropriate domain placement since this represents Smith's overarching theoretical framework for economic transformation. This is a foundational theoretical concept that spans multiple specific economic mechanisms and policies.

## vsm_relevance — 4.0 / 5.0

This entity maps well to S4 (intelligence/environmental adaptation) as it represents a systemic response to changing economic understanding and environmental conditions. It also relates to S5 (identity/policy) as it involves fundamental shifts in economic policy orientation and national economic identity.

## explanatory_value — 5.0 / 5.0

This entity provides significant explanatory power by illuminating the structural mechanism of how economies can transition from one organizing principle (mercantilism) to another (free markets). It explains both the process and rationale for fundamental economic system change that Smith advocates throughout his work.
