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# Foreign Trade

## Definition

Commercial exchange between different countries, which Smith identifies as generally more uncertain in its returns than inland trade, though the degree of uncertainty varies among different branches of foreign commerce.

## Source Chapter

Book I, Chapter 10

## Context

Smith notes that foreign trade, particularly certain branches like trade to North America, offers higher potential profits than inland trade due to greater uncertainty of returns. This observation about risk and reward in different types of commerce forms part of his analysis of profit differentials across employments of stock.

## Economic Domain

Exchange

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