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# Commercial Jealousy Mechanism

## Context

The economic and political dynamics that drive nations to restrict trade with rivals and grant preferential treatment to allies, based on mercantilist beliefs about national wealth accumulation. This mechanism often leads to inefficient trade arrangements that benefit specific interest groups at the expense of overall economic welfare.

## Source Chapter

Book IV, Chapter 6

## Context

Smith identifies commercial jealousy as a key driver of restrictive trade policies and preferential commercial treaties. He argues that this emotion-based policy approach leads to economically inefficient arrangements that serve political rather than economic objectives.

## Economic Domain

Regulation

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