704 B
704 B
Market-Based Economic Identity
Definition
The way in which the characteristics and extent of local markets shape the economic activities, specialisations, and development patterns of different regions and communities. Market-based economic identity determines what types of production and trade are viable in different locations.
Source Chapter
Book I, Chapter 3
Context
Smith shows how different regions develop distinct economic identities based on their market access: coastal areas become trading centres, river regions develop industries supported by inland navigation, while isolated inland areas remain focused on subsistence agriculture.
Economic Domain
General Theory