---
entity_slug: foreign_trade_of_consumption
evaluator: null
evaluated_at: '2026-02-23T05:30:17.314243'
overall_score: 4.2
scores:
- name: definition_precision
  value: 4.0
  max_value: 5.0
  rationale: The definition clearly distinguishes foreign trade of consumption from
    other types of trade by specifying it involves purchasing foreign goods for domestic
    consumption. It provides concrete characteristics (replacing domestic production,
    bringing foreign products into the country) that make the concept distinct and
    measurable.
- name: source_grounding
  value: 5.0
  max_value: 5.0
  rationale: This entity is directly grounded in Smith's text from Book II, Chapter
    5, where he explicitly categorizes and analyzes different types of foreign trade.
    The definition accurately reflects Smith's own distinction between foreign trade
    of consumption and other forms of trade like the carrying trade.
- name: domain_placement
  value: 5.0
  max_value: 5.0
  rationale: The "Exchange" domain is perfectly appropriate for this concept, as foreign
    trade of consumption is fundamentally about the exchange of goods across national
    boundaries. This fits naturally within Smith's broader analysis of how different
    forms of exchange affect national wealth.
- name: vsm_relevance
  value: 3.0
  max_value: 5.0
  rationale: This entity has moderate VSM relevance, primarily mapping to S4 (intelligence/environmental
    adaptation) as it represents how an economic system adapts to external environments
    through trade relationships. However, it could also touch on S1 (operations) in
    terms of actual trade execution, making its VSM placement somewhat diffuse.
- name: explanatory_value
  value: 4.0
  max_value: 5.0
  rationale: The entity provides strong explanatory value by illuminating Smith's
    mechanism for how different types of trade affect domestic capital and productive
    labor differently. It helps explain why Smith viewed some forms of international
    economic activity as less beneficial than others for national wealth creation.
---

# Evaluation: Foreign Trade Of Consumption

## definition_precision — 4.0 / 5.0

The definition clearly distinguishes foreign trade of consumption from other types of trade by specifying it involves purchasing foreign goods for domestic consumption. It provides concrete characteristics (replacing domestic production, bringing foreign products into the country) that make the concept distinct and measurable.

## source_grounding — 5.0 / 5.0

This entity is directly grounded in Smith's text from Book II, Chapter 5, where he explicitly categorizes and analyzes different types of foreign trade. The definition accurately reflects Smith's own distinction between foreign trade of consumption and other forms of trade like the carrying trade.

## domain_placement — 5.0 / 5.0

The "Exchange" domain is perfectly appropriate for this concept, as foreign trade of consumption is fundamentally about the exchange of goods across national boundaries. This fits naturally within Smith's broader analysis of how different forms of exchange affect national wealth.

## vsm_relevance — 3.0 / 5.0

This entity has moderate VSM relevance, primarily mapping to S4 (intelligence/environmental adaptation) as it represents how an economic system adapts to external environments through trade relationships. However, it could also touch on S1 (operations) in terms of actual trade execution, making its VSM placement somewhat diffuse.

## explanatory_value — 4.0 / 5.0

The entity provides strong explanatory value by illuminating Smith's mechanism for how different types of trade affect domestic capital and productive labor differently. It helps explain why Smith viewed some forms of international economic activity as less beneficial than others for national wealth creation.
