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# Commercial Regulations

## Definition

Government-imposed rules and restrictions on trade, including tariffs, quotas, prohibitions, and licensing requirements, designed to direct economic activity according to political objectives rather than market forces. These regulations attempt to substitute political wisdom for natural market mechanisms but often produce unintended negative consequences.

## Source Chapter

Book IV, Chapter 8

## Context

Smith provides a comprehensive critique of commercial regulations as the primary mechanism through which the mercantile system attempts to manage trade. He argues that these artificial interventions consistently produce outcomes opposite to their intended effects, harming the broader economy while benefiting specific interest groups.

## Economic Domain

Regulation

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