# Market-Based Specialisation

## Definition

The pattern of economic organisation where individuals and regions focus on producing specific goods or services based on market demand rather than self-sufficiency. Market-based specialisation requires sufficient market extent to absorb the output of specialists.

## Source Chapter

Book I, Chapter 3

## Context

Smith's entire chapter demonstrates market-based specialisation, showing how different market sizes support different degrees of specialisation: from subsistence farmers who must do everything themselves, to artisans who can specialise fully in great towns.

## Economic Domain

Production

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