657 B
657 B
Market-Based Specialisation
Definition
The pattern of economic organisation where individuals and regions focus on producing specific goods or services based on market demand rather than self-sufficiency. Market-based specialisation requires sufficient market extent to absorb the output of specialists.
Source Chapter
Book I, Chapter 3
Context
Smith's entire chapter demonstrates market-based specialisation, showing how different market sizes support different degrees of specialisation: from subsistence farmers who must do everything themselves, to artisans who can specialise fully in great towns.
Economic Domain
Production