613 B
613 B
Smuggling
Definition
The illegal importation or exportation of goods to avoid customs duties or prohibitions, often becoming a major channel for trade when legal restrictions are too severe.
Source Chapter
Book IV, Chapter 5
Context
Smith discusses how prohibitions on gold and silver export in Spain and Portugal create smuggling opportunities and raise the value of precious metals in other countries, harming the prohibiting nations.
Economic Domain
Exchange