846 B
846 B
Natural Liberty in Colonial Trade
Definition
The principle that individuals should be free to engage in commerce according to their own judgment without artificial restrictions, including the right to buy and sell in the most advantageous markets. This concept underlies Smith's critique of colonial monopoly systems.
Source Chapter
Book IV, Chapter 7
Context
Smith presents natural liberty as the proper framework for colonial economic relations, arguing that monopoly restrictions violate this fundamental principle. He contends that allowing natural liberty would produce better outcomes for both colonies and the mother country than the current restrictive system.
Economic Domain
Regulation