---
entity_slug: foreign_capital_exportation
evaluator: null
evaluated_at: '2026-02-23T05:28:58.482254'
overall_score: 4.4
scores:
- name: definition_precision
  value: 4.0
  max_value: 5.0
  rationale: The definition clearly distinguishes foreign capital exportation from
    domestic capital exportation and specifies the conditions under which it occurs
    (insufficient domestic capital). The concept is well-bounded and captures a distinct
    economic arrangement rather than being vague or circular.
- name: source_grounding
  value: 5.0
  max_value: 5.0
  rationale: This concept is directly grounded in Smith's text from Book III, Chapter
    1, where he explicitly discusses the use of foreign capital for exportation when
    domestic capital is insufficient. The examples of Egypt, China, and India achieving
    opulence despite foreign-controlled export trade are authentic to Smith's analysis.
- name: domain_placement
  value: 5.0
  max_value: 5.0
  rationale: The "Exchange" domain is perfectly appropriate since this entity deals
    with international trade arrangements and the flow of capital across borders.
    The concept fundamentally concerns how societies engage in exchange relationships
    when facing capital constraints.
- name: vsm_relevance
  value: 4.0
  max_value: 5.0
  rationale: This entity maps well to S4 (intelligence/environmental adaptation) as
    it represents how a society adapts to capital constraints by engaging with foreign
    actors, and potentially S1 as it affects primary operations. The strategic nature
    of choosing foreign over domestic capital exportation shows clear VSM relevance.
- name: explanatory_value
  value: 4.0
  max_value: 5.0
  rationale: The entity illuminates an important mechanism by which capital-constrained
    societies can still participate in international trade and achieve economic development.
    It explains how societies can optimize their limited domestic capital allocation
    while still accessing export markets through foreign partnerships.
---

# Evaluation: Foreign Capital Exportation

## definition_precision — 4.0 / 5.0

The definition clearly distinguishes foreign capital exportation from domestic capital exportation and specifies the conditions under which it occurs (insufficient domestic capital). The concept is well-bounded and captures a distinct economic arrangement rather than being vague or circular.

## source_grounding — 5.0 / 5.0

This concept is directly grounded in Smith's text from Book III, Chapter 1, where he explicitly discusses the use of foreign capital for exportation when domestic capital is insufficient. The examples of Egypt, China, and India achieving opulence despite foreign-controlled export trade are authentic to Smith's analysis.

## domain_placement — 5.0 / 5.0

The "Exchange" domain is perfectly appropriate since this entity deals with international trade arrangements and the flow of capital across borders. The concept fundamentally concerns how societies engage in exchange relationships when facing capital constraints.

## vsm_relevance — 4.0 / 5.0

This entity maps well to S4 (intelligence/environmental adaptation) as it represents how a society adapts to capital constraints by engaging with foreign actors, and potentially S1 as it affects primary operations. The strategic nature of choosing foreign over domestic capital exportation shows clear VSM relevance.

## explanatory_value — 4.0 / 5.0

The entity illuminates an important mechanism by which capital-constrained societies can still participate in international trade and achieve economic development. It explains how societies can optimize their limited domestic capital allocation while still accessing export markets through foreign partnerships.
