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# Colony Economic System Principles

## Definition

The fundamental economic theories and concepts that underlie colonial economic
arrangements, which Smith argues should be based on natural liberty and free
trade rather than mercantilist restrictions.

## Source Chapter

Book V, Chapter 3

## Context

Smith advocates for colonial economic systems based on principles of natural
liberty and free trade, arguing that these are more likely to promote prosperity
than mercantilist restrictions.

## Economic Domain

Regulation

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