# Inland Market Limitation

## Definition

The constraint on economic development experienced by regions distant from major trade routes and waterways, resulting in smaller markets, higher transportation costs, and reduced opportunities for specialisation and division of labour.

## Source Chapter

Book I, Chapter 3

## Context

Smith explains that inland parts of the country can have no other market than the surrounding country for a long time, and their improvement must always be posterior to the improvement of that country, illustrating how geographical isolation limits economic development.

## Economic Domain

Production

---