632 B
632 B
Market Obstruction
Definition
The artificial or natural barriers that prevent the free flow of goods between different regions, thereby limiting market extent and the division of labour. Market obstructions can be caused by political boundaries, poor infrastructure, or geographical barriers.
Source Chapter
Book I, Chapter 3
Context
Smith discusses how nations possessing territory through which a river flows can obstruct communication between upper country and the sea, limiting commerce and preventing the full development of markets and specialisation in affected regions.
Economic Domain
Regulation