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# Round-about Foreign Trade of Consumption

## Definition

A trade pattern where a country imports goods by first exporting its own products to a third country, receiving payment in precious metals, then using those metals to purchase the desired imports. This contrasts with direct trade where imports are paid for with domestic exports.

## Source Chapter

Book IV, Chapter 3

## Context

Smith argues that round-about trade is less advantageous than direct trade, using the example of England potentially importing French goods through tobacco and East India goods rather than through direct English manufactures.

## Economic Domain

Exchange

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