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# Capital Employment Advantages

## Definition

The relative benefits associated with different forms of capital investment, including the security and control advantages of land improvement, the visibility advantages of manufacturing, and the risk disadvantages of foreign trade. These advantages influence capital allocation decisions and determine the natural progression of economic development.

## Source Chapter

Book III, Chapter 1

## Context

Smith uses this analysis of capital employment advantages to explain why the natural order of economic development follows a specific sequence, demonstrating how security considerations and control preferences shape investment patterns.

## Economic Domain

Accumulation

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