---
entity_slug: trade_encouragement
evaluator: null
evaluated_at: '2026-02-23T06:33:15.863017'
overall_score: 4.2
scores:
- name: definition_precision
  value: 4.0
  max_value: 5.0
  rationale: The definition clearly captures the concept of mutual benefits arising
    from specialized exchange between regions. It avoids circularity by explaining
    the mechanism (comparative advantage leading to reciprocal market creation) rather
    than just restating "encouragement."
- name: source_grounding
  value: 5.0
  max_value: 5.0
  rationale: The entity is directly grounded in Smith's specific example of London
    and Edinburgh's commerce, with the exact quote provided showing how markets "give
    a good deal of encouragement to each other's industry." This is clearly stated
    in the source text.
- name: domain_placement
  value: 5.0
  max_value: 5.0
  rationale: '"Exchange" is the correct domain placement, as this concept fundamentally
    concerns how market transactions create reciprocal benefits between trading partners.
    The entity sits squarely within exchange theory rather than production, distribution,
    or consumption.'
- name: vsm_relevance
  value: 3.0
  max_value: 5.0
  rationale: This entity has moderate VSM relevance, potentially mapping to S1 (as
    operational exchange activity) or S4 (as environmental adaptation through market
    intelligence). However, it's somewhat abstract and doesn't clearly belong to a
    single VSM system.
- name: explanatory_value
  value: 4.0
  max_value: 5.0
  rationale: "The entity illuminates an important mechanism in Smith's theory\u2014\
    how specialization and trade create self-reinforcing cycles of industrial development\
    \ through mutual market provision. This goes beyond surface description to explain\
    \ a structural economic relationship."
---

# Evaluation: Trade Encouragement

## definition_precision — 4.0 / 5.0

The definition clearly captures the concept of mutual benefits arising from specialized exchange between regions. It avoids circularity by explaining the mechanism (comparative advantage leading to reciprocal market creation) rather than just restating "encouragement."

## source_grounding — 5.0 / 5.0

The entity is directly grounded in Smith's specific example of London and Edinburgh's commerce, with the exact quote provided showing how markets "give a good deal of encouragement to each other's industry." This is clearly stated in the source text.

## domain_placement — 5.0 / 5.0

"Exchange" is the correct domain placement, as this concept fundamentally concerns how market transactions create reciprocal benefits between trading partners. The entity sits squarely within exchange theory rather than production, distribution, or consumption.

## vsm_relevance — 3.0 / 5.0

This entity has moderate VSM relevance, potentially mapping to S1 (as operational exchange activity) or S4 (as environmental adaptation through market intelligence). However, it's somewhat abstract and doesn't clearly belong to a single VSM system.

## explanatory_value — 4.0 / 5.0

The entity illuminates an important mechanism in Smith's theory—how specialization and trade create self-reinforcing cycles of industrial development through mutual market provision. This goes beyond surface description to explain a structural economic relationship.
