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# Colonial Economic Integration

## Definition

The degree of economic interconnection between colonies and the broader global economy, including trade relationships, capital flows, and labor mobility. Greater integration allows colonies to specialize according to their comparative advantages and access larger markets.

## Source Chapter

Book IV, Chapter 7

## Context

Smith argues that colonial economic integration with global markets is essential for optimal development. He contends that monopoly restrictions artificially limit this integration, preventing colonies from achieving the economic benefits that would flow from unrestricted participation in international commerce.

## Economic Domain

Exchange

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