---
entity_slug: annual_surplus_of_gold_in_portugal
evaluator: null
evaluated_at: '2026-02-23T00:34:06.384729'
overall_score: 4.6
scores:
- name: definition_precision
  value: 4.0
  max_value: 5.0
  rationale: The definition clearly specifies what constitutes the surplus (excess
    gold beyond domestic demand for coin and plate) and its economic consequence (must
    be exported to find advantageous markets). The concept is distinct and measurable,
    though it could be slightly more precise about the mechanisms determining "domestic
    demand."
- name: source_grounding
  value: 5.0
  max_value: 5.0
  rationale: This entity is directly grounded in Smith's analysis of the Portugal-England
    trade relationship in Book IV, Chapter 6, where he specifically discusses how
    Brazil's gold production creates surplus that must find foreign markets. Smith
    uses this as a concrete example to critique mercantilist assumptions about trade
    treaties.
- name: domain_placement
  value: 5.0
  max_value: 5.0
  rationale: The "Exchange" domain is perfectly appropriate since this entity fundamentally
    concerns international trade flows and the mechanisms by which surplus commodities
    find markets across borders. The concept is central to understanding exchange
    rate dynamics and trade balance effects.
- name: vsm_relevance
  value: 4.0
  max_value: 5.0
  rationale: This entity maps well to S4 (intelligence/environmental adaptation) as
    it represents how Portugal's economic system must adapt to external market conditions
    created by its resource endowment. It also touches S1 (primary operations) regarding
    the fundamental production-export cycle that defines Portugal's economic structure.
- name: explanatory_value
  value: 5.0
  max_value: 5.0
  rationale: "This entity illuminates a crucial structural mechanism in Smith's critique\
    \ of mercantilism\u2014how natural resource endowments create trade necessities\
    \ that override policy preferences. It demonstrates why trade treaties may be\
    \ less influential than mercantilist theory assumes, providing genuine insight\
    \ into the underlying forces driving international commerce."
---

# Evaluation: Annual Surplus Of Gold In Portugal

## definition_precision — 4.0 / 5.0

The definition clearly specifies what constitutes the surplus (excess gold beyond domestic demand for coin and plate) and its economic consequence (must be exported to find advantageous markets). The concept is distinct and measurable, though it could be slightly more precise about the mechanisms determining "domestic demand."

## source_grounding — 5.0 / 5.0

This entity is directly grounded in Smith's analysis of the Portugal-England trade relationship in Book IV, Chapter 6, where he specifically discusses how Brazil's gold production creates surplus that must find foreign markets. Smith uses this as a concrete example to critique mercantilist assumptions about trade treaties.

## domain_placement — 5.0 / 5.0

The "Exchange" domain is perfectly appropriate since this entity fundamentally concerns international trade flows and the mechanisms by which surplus commodities find markets across borders. The concept is central to understanding exchange rate dynamics and trade balance effects.

## vsm_relevance — 4.0 / 5.0

This entity maps well to S4 (intelligence/environmental adaptation) as it represents how Portugal's economic system must adapt to external market conditions created by its resource endowment. It also touches S1 (primary operations) regarding the fundamental production-export cycle that defines Portugal's economic structure.

## explanatory_value — 5.0 / 5.0

This entity illuminates a crucial structural mechanism in Smith's critique of mercantilism—how natural resource endowments create trade necessities that override policy preferences. It demonstrates why trade treaties may be less influential than mercantilist theory assumes, providing genuine insight into the underlying forces driving international commerce.
