markitect-main/examples/infospace-with-history/output/entities/round-about-foreign-trade-of-consumption.md

Round-about Foreign Trade of Consumption

Definition

A trade pattern where a country imports goods by first exporting its own products to a third country, receiving payment in precious metals, then using those metals to purchase the desired imports. This contrasts with direct trade where imports are paid for with domestic exports.

Source Chapter

Book IV, Chapter 3

Context

Smith argues that round-about trade is less advantageous than direct trade, using the example of England potentially importing French goods through tobacco and East India goods rather than through direct English manufactures.

Economic Domain

Exchange

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