# Market-Based Economic Structure

## Definition

The organisation of economic activities and specialisation patterns that emerge based on market access, transportation costs, and the division of labour. Market-based economic structure varies across regions depending on their geographical advantages and market connectivity.

## Source Chapter

Book I, Chapter 3

## Context

Smith shows how market-based economic structure differs: coastal areas develop trading economies, river regions support manufacturing and industry, while isolated inland areas maintain subsistence agriculture and limited specialisation.

## Economic Domain

General Theory

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