745 B
745 B
Transportation Mode Economic Effects
Definition
The different economic outcomes that result from various modes of transportation, particularly the contrast between water-carriage and land-carriage in terms of market extent, specialisation possibilities, and development patterns. Transportation mode economic effects explain why some regions develop differently than others.
Source Chapter
Book I, Chapter 3
Context
Smith's detailed comparison of water-carriage (enabling extensive markets and full specialisation) versus land-carriage (limiting trade to high-value goods and preventing full division of labour) demonstrates the significant economic effects of different transportation modes.
Economic Domain
Exchange