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# Colonial Economic Autonomy

## Definition

The degree of self-determination colonies possess in managing their economic affairs, including the ability to trade freely, set local policies, and retain economic benefits. Greater autonomy allows colonies to develop according to their natural advantages rather than external restrictions.

## Source Chapter

Book IV, Chapter 7

## Context

Smith argues that colonial economic autonomy is essential for optimal development, allowing settlements to exploit their natural advantages of land abundance and labor scarcity. He contends that monopoly restrictions artificially limit this autonomy, reducing colonial prosperity and efficiency.

## Economic Domain

Regulation

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