# Direct Foreign Trade of Consumption ## Definition A trade pattern where a country directly exchanges its own products for the products it desires from another country, without intermediate transactions through third parties or the use of precious metals as intermediaries. ## Source Chapter Book IV, Chapter 3 ## Context Smith presents this as the most advantageous form of trade, arguing that England would benefit more from directly exchanging its hardware and cloth for French wines than through round-about routes involving tobacco or precious metals. ## Economic Domain Exchange ---