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Domestic Industry Protection

Definition

Government policies that shield domestic producers from foreign competition through import restrictions, tariffs, or prohibitions. These measures aim to preserve and promote local manufacturing and agricultural sectors by limiting access to foreign goods in the domestic market.

Source Chapter

Book IV, Chapter 2

Context

Smith examines various forms of domestic industry protection, including prohibitions on live cattle imports, high duties on corn, and restrictions on foreign woollen goods. He analyzes how these protections affect different sectors and questions whether they ultimately benefit or harm the broader economy.

Economic Domain

Regulation