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# Economic Spatial Organization

## Definition

The geographic distribution of economic activities based on natural advantages, transportation costs, and market access rather than government planning. Smith emphasizes how this organization emerges naturally from market forces.

## Source Chapter

Book IV, Chapter 6

## Context

Smith discusses how economic activities naturally organize themselves geographically based on comparative advantages and market access, arguing that government attempts to direct this organization are generally counterproductive.

## Economic Domain

Exchange

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