# Round-about Foreign Trade of Consumption ## Definition A trade pattern where a country imports goods by first exporting its own products to a third country, receiving payment in precious metals, then using those metals to purchase the desired imports. This contrasts with direct trade where imports are paid for with domestic exports. ## Source Chapter Book IV, Chapter 3 ## Context Smith argues that round-about trade is less advantageous than direct trade, using the example of England potentially importing French goods through tobacco and East India goods rather than through direct English manufactures. ## Economic Domain Exchange ---