# Division of Labour — constrains — Market Extent

## Subject

Division of Labour

## Predicate

limited by

## Object

Market Extent

## Relation Type

constrains

## VSM Channel

S2 ← S1 (the coordination reach of markets bounds the scope of operational specialisation)

## Evidence

Book I, Chapter 3: "As it is the power of exchanging that gives occasion
to the division of labour, so the extent of this division must always be
limited by the extent of that power, or, in other words, by the extent
of the market."

## Feedback Role

**Market Expansion loop (positive/reinforcing):**
Market Extent → enables greater Division of Labour → raises Productive
Powers of Labour → generates surplus → expands Trade → expands
Market Extent.

This edge (limited by) is the structural constraint that gives the loop
its character: the level of specialisation that can be sustained depends
on the size of the market that can absorb the specialised output.
Smith's famous opening of Chapter III states this with unusual directness.
