719 B
719 B
Economic Spatial Organization
Definition
The geographic distribution of economic activities based on natural advantages, transportation costs, and market access rather than government planning. Smith emphasizes how this organization emerges naturally from market forces.
Source Chapter
Book IV, Chapter 6
Context
Smith discusses how economic activities naturally organize themselves geographically based on comparative advantages and market access, arguing that government attempts to direct this organization are generally counterproductive.
Economic Domain
Exchange