# Canal Communication

## Definition

The artificial waterways constructed to connect rivers, lakes, or seas, creating extended networks for the transportation of goods. Canal communication dramatically increases market extent by linking previously isolated regions and reducing transportation costs.

## Source Chapter

Book I, Chapter 3

## Context

Smith describes how the Nile breaks into many different canals in Lower Egypt, and how the Ganges and Chinese rivers form navigable canals, creating communication systems that support extensive markets and enable the division of labour in these regions.

## Economic Domain

Exchange

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