687 B
687 B
Artificial Market Creation
Definition
The human efforts to overcome natural market limitations through the construction of infrastructure like canals, roads, and ports, or through political arrangements that facilitate trade. Artificial market creation extends the reach of commerce beyond what natural advantages alone would permit.
Source Chapter
Book I, Chapter 3
Context
Smith describes how the Nile's natural flow was enhanced by human art to create extensive canal communication in Egypt, and how various river systems were connected through canals to create inland navigation networks, demonstrating artificial market creation.
Economic Domain
Exchange