infospace: process book-4-chapter-05
Extract entities, map to VSM, and synthesize analysis.
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<!-- generated: provider=openrouter model=arcee-ai/trinity-large-preview:free date=2026-02-19 source=book-4-chapter-05 -->
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# Bounty
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## Definition
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A government subsidy paid to merchants or manufacturers to encourage the
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exportation of specific goods, designed to make domestic products more
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competitive in foreign markets by compensating for selling below cost price.
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## Source Chapter
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Book IV, Chapter 5
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## Context
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Smith's central focus in this chapter is critiquing the mercantile system's
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use of bounties as a means of enriching the nation through the balance of
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trade. He argues that bounties force trade into less advantageous channels
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and that they cannot genuinely lower the price of commodities in the home
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market.
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## Economic Domain
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Regulation
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---
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