---
entity_slug: market_extent_economic_impact
entity_type: Relation
vsm_system: S4
type_rationale: Market extent economic impact represents a structural causal link
  between market size and economic outcomes like productivity and specialization,
  functioning as a connector that explains how one variable (market reach) systematically
  affects others (division of labour, economic development).
vsm_rationale: This entity operates primarily in the intelligence system because it
  represents the adaptive mechanism by which economic systems scan and respond to
  environmental opportunities for expanded exchange and specialization based on market
  size.
classified_at: '2026-02-23T11:12:57.936730'
---

# Classification: Market Extent Economic Impact

## Entity Type

Relation

## VSM System

S4

## Type Rationale

Market extent economic impact represents a structural causal link between market size and economic outcomes like productivity and specialization, functioning as a connector that explains how one variable (market reach) systematically affects others (division of labour, economic development).

## VSM Rationale

This entity operates primarily in the intelligence system because it represents the adaptive mechanism by which economic systems scan and respond to environmental opportunities for expanded exchange and specialization based on market size.
