806 B
806 B
National Animosity in Commerce
Definition
The hostile attitudes and policies between nations that frame international trade as economic warfare rather than mutual benefit, leading to retaliatory restrictions, trade barriers, and the pursuit of policies designed to harm trading partners rather than maximize collective prosperity.
Source Chapter
Book IV, Chapter 3
Context
Smith identifies this as a primary driver of unreasonable trade restrictions, explaining how merchants exploit nationalistic sentiments to secure protection while governments foolishly adopt policies based on animosity rather than economic self-interest.
Economic Domain
Regulation