903 B
903 B
Distant Market Manufacturing
Definition
The production of manufactured goods intended for sale in markets beyond the immediate locality, which develops only when artificers have excess capital and local markets are saturated. This manufacturing represents a more advanced stage of economic development than local production and requires sufficient market access to justify the investment.
Source Chapter
Book III, Chapter 1
Context
Smith presents this as a later stage of economic development that occurs only after local markets are saturated, explaining why manufacturing for distant sale develops slowly in areas with limited market access and how this progression reflects the natural development of commercial economies.
Economic Domain
Production