---
entity_slug: consumption_of_foreign_goods
evaluator: null
evaluated_at: '2026-02-23T05:02:18.602077'
overall_score: 4.4
scores:
- name: definition_precision
  value: 4.0
  max_value: 5.0
  rationale: The definition clearly distinguishes consumption of foreign goods from
    domestic consumption and provides specific context about mercantile concerns regarding
    precious metals. It could be slightly more precise about what constitutes "use
    or purchase" but overall captures a distinct economic concept.
- name: source_grounding
  value: 5.0
  max_value: 5.0
  rationale: This entity is directly grounded in Smith's discussion of mercantile
    arguments about imports and re-exports in Book IV, Chapter 1. The definition accurately
    reflects Smith's analysis of how merchants defended foreign trade against mercantile
    criticisms.
- name: domain_placement
  value: 5.0
  max_value: 5.0
  rationale: The "Consumption" domain is the correct placement for this entity, as
    it specifically deals with the consumption aspect of foreign goods rather than
    their production or trade mechanisms. This distinguishes it from pure trade or
    production concepts.
- name: vsm_relevance
  value: 4.0
  max_value: 5.0
  rationale: This entity maps well to S4 (intelligence/environmental adaptation) as
    it represents how a nation's economic system adapts to and interacts with foreign
    environments through consumption choices. It also has some relevance to S1 as
    a primary economic operation.
- name: explanatory_value
  value: 4.0
  max_value: 5.0
  rationale: "The entity illuminates an important mechanism in Smith's critique of\
    \ mercantilism\u2014how consumption of foreign goods relates to national wealth\
    \ through the balance of trade and re-export opportunities. It reveals structural\
    \ tensions between mercantilist theory and actual trade practices rather than\
    \ just naming a surface phenomenon."
---

# Evaluation: Consumption Of Foreign Goods

## definition_precision — 4.0 / 5.0

The definition clearly distinguishes consumption of foreign goods from domestic consumption and provides specific context about mercantile concerns regarding precious metals. It could be slightly more precise about what constitutes "use or purchase" but overall captures a distinct economic concept.

## source_grounding — 5.0 / 5.0

This entity is directly grounded in Smith's discussion of mercantile arguments about imports and re-exports in Book IV, Chapter 1. The definition accurately reflects Smith's analysis of how merchants defended foreign trade against mercantile criticisms.

## domain_placement — 5.0 / 5.0

The "Consumption" domain is the correct placement for this entity, as it specifically deals with the consumption aspect of foreign goods rather than their production or trade mechanisms. This distinguishes it from pure trade or production concepts.

## vsm_relevance — 4.0 / 5.0

This entity maps well to S4 (intelligence/environmental adaptation) as it represents how a nation's economic system adapts to and interacts with foreign environments through consumption choices. It also has some relevance to S1 as a primary economic operation.

## explanatory_value — 4.0 / 5.0

The entity illuminates an important mechanism in Smith's critique of mercantilism—how consumption of foreign goods relates to national wealth through the balance of trade and re-export opportunities. It reveals structural tensions between mercantilist theory and actual trade practices rather than just naming a surface phenomenon.
