688 B
688 B
Trade Route Dependency
Definition
The economic reliance of regions on specific transportation routes for access to markets, making their development contingent on the existence and maintenance of these routes. Trade route dependency creates vulnerability to disruptions and limits development to areas along established routes.
Source Chapter
Book I, Chapter 3
Context
Smith's analysis of how industry develops along sea-coasts, navigable rivers, and canal systems, but not in their absence, demonstrates trade route dependency, showing how economic development follows and depends on the availability of transportation infrastructure.
Economic Domain
Exchange