---
entity_slug: human_folly_injustice_exposure
evaluator: null
evaluated_at: '2026-02-23T05:35:29.156080'
overall_score: 4.0
scores:
- name: definition_precision
  value: 4.0
  max_value: 5.0
  rationale: The definition clearly identifies a specific type of risk exposure in
    foreign trade, distinguishing it from other forms of business risk by focusing
    on the uncontrollable nature of human error and injustice in international contexts.
    It avoids circularity and captures a distinct vulnerability that merchants face.
- name: source_grounding
  value: 4.0
  max_value: 5.0
  rationale: This concept is well-grounded in Smith's discussion of why foreign trade
    is less secure than domestic investments, where he explicitly discusses the risks
    of human folly and injustice that merchants cannot control. The entity accurately
    reflects Smith's analysis of the security gradient across different forms of capital
    employment.
- name: domain_placement
  value: 5.0
  max_value: 5.0
  rationale: The placement in the "Accumulation" domain is correct, as this concept
    directly relates to capital allocation decisions and the factors that influence
    where investors choose to deploy their resources. It fits naturally within Smith's
    broader analysis of capital accumulation patterns.
- name: vsm_relevance
  value: 3.0
  max_value: 5.0
  rationale: This entity has moderate VSM relevance, primarily relating to S4 (intelligence/environmental
    adaptation) as it concerns external threats and environmental uncertainties that
    organizations must monitor. However, it's somewhat abstract and doesn't map as
    clearly to specific VSM functions as more operational concepts would.
- name: explanatory_value
  value: 4.0
  max_value: 5.0
  rationale: The entity provides genuine explanatory power by illuminating why rational
    investors prefer domestic over foreign investments, helping explain the structural
    mechanism behind Smith's "natural order" of economic development. It reveals an
    important causal factor in capital allocation behavior rather than merely describing
    surface phenomena.
---

# Evaluation: Human Folly Injustice Exposure

## definition_precision — 4.0 / 5.0

The definition clearly identifies a specific type of risk exposure in foreign trade, distinguishing it from other forms of business risk by focusing on the uncontrollable nature of human error and injustice in international contexts. It avoids circularity and captures a distinct vulnerability that merchants face.

## source_grounding — 4.0 / 5.0

This concept is well-grounded in Smith's discussion of why foreign trade is less secure than domestic investments, where he explicitly discusses the risks of human folly and injustice that merchants cannot control. The entity accurately reflects Smith's analysis of the security gradient across different forms of capital employment.

## domain_placement — 5.0 / 5.0

The placement in the "Accumulation" domain is correct, as this concept directly relates to capital allocation decisions and the factors that influence where investors choose to deploy their resources. It fits naturally within Smith's broader analysis of capital accumulation patterns.

## vsm_relevance — 3.0 / 5.0

This entity has moderate VSM relevance, primarily relating to S4 (intelligence/environmental adaptation) as it concerns external threats and environmental uncertainties that organizations must monitor. However, it's somewhat abstract and doesn't map as clearly to specific VSM functions as more operational concepts would.

## explanatory_value — 4.0 / 5.0

The entity provides genuine explanatory power by illuminating why rational investors prefer domestic over foreign investments, helping explain the structural mechanism behind Smith's "natural order" of economic development. It reveals an important causal factor in capital allocation behavior rather than merely describing surface phenomena.
