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Economic Geography

Economic Geography

Definition

The relationship between physical geography and economic development, particularly how natural features like coastlines, rivers, and terrain affect market extent, transportation costs, and the pattern of industrial development across different regions.

Source Chapter

Book I, Chapter 3

Context

Smith's entire analysis demonstrates economic geography by showing how natural features determine market extent: smooth seas with islands favour early navigation, navigable rivers create inland markets, and frozen oceans or distant rivers prevent commerce in certain regions.

Economic Domain

General Theory