655 B
655 B
Market-Based Economic Structure
Definition
The organisation of economic activities and specialisation patterns that emerge based on market access, transportation costs, and the division of labour. Market-based economic structure varies across regions depending on their geographical advantages and market connectivity.
Source Chapter
Book I, Chapter 3
Context
Smith shows how market-based economic structure differs: coastal areas develop trading economies, river regions support manufacturing and industry, while isolated inland areas maintain subsistence agriculture and limited specialisation.
Economic Domain
General Theory