--- MAPPING: restraints-upon-importation-to-system-3-control ---

# Restraints Upon Importation -> System 3 (Control)

## Economic Entity Reference

--- ENTITY: restraints upon importation ---

# Restraints Upon Importation

## Definition

Legal prohibitions or high duties imposed on the importation of goods that can be produced domestically, designed to secure a monopoly of the home market for domestic industry. These restraints prevent foreign competition in specific sectors by either completely banning imports or making them prohibitively expensive through tariffs.

## Source Chapter

Book IV, Chapter 2

## Context

This entity appears as the central mechanism discussed in the chapter, forming the basis of Smith's critique of protectionist trade policies. The chapter examines how restraints upon importation affect domestic industry, market prices, and overall economic efficiency, arguing that such restrictions often harm rather than help the general economy.

## Economic Domain

Regulation

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## VSM Concept Reference

--- id: vsm-framework ---
# System 3 (S3) — Control / Operational Management

The structures and controls that establish the rules, resources, rights, and responsibilities of System 1 and provide an interface between Systems 1 and Systems 4/5. System 3 represents the day-to-day control of the organisation. It optimises the internal environment.

**In economic terms:** Government regulation of trade, taxation policy, labour laws, enforcement of contracts, the "invisible hand" as emergent internal regulation, guilds and corporations governing members.

**Key properties:** Internal regulation, resource allocation