# Market-Based Economic Geography

## Definition

The study of how markets and their characteristics shape the geographical distribution of economic activities, specialisation patterns, and development across different regions. Market-based economic geography explains the spatial organisation of economic activities based on market access and transportation costs.

## Source Chapter

Book I, Chapter 3

## Context

Smith's analysis demonstrates market-based economic geography by showing how different market sizes and accessibilities create distinct patterns of economic activity: trading centres along coasts, manufacturing along rivers, and subsistence agriculture in isolated areas.

## Economic Domain

General Theory

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