787 B
787 B
National Enrichment Through Neighbour's Wealth
Definition
The principle that a nation's economic prosperity is enhanced rather than threatened by the wealth and development of its trading partners, as rich and industrious neighbours provide larger markets, better goods, and more opportunities for mutually beneficial exchange.
Source Chapter
Book IV, Chapter 3
Context
Smith argues against the mercantilist fear of neighbourly prosperity, explaining that wealthy trading partners are better customers and that commercial success should be seen as an opportunity for mutual gain rather than competitive threat.
Economic Domain
Exchange