---
entity_slug: capital_employment_advantages
evaluator: null
evaluated_at: '2026-02-23T04:40:36.162479'
overall_score: 4.6
scores:
- name: definition_precision
  value: 4.0
  max_value: 5.0
  rationale: The definition clearly distinguishes between different types of capital
    employment advantages (security/control for land, visibility for manufacturing,
    risk for foreign trade) and connects them to investment decisions. It avoids circularity
    and captures a distinct analytical framework rather than a vague concept.
- name: source_grounding
  value: 5.0
  max_value: 5.0
  rationale: This entity is directly grounded in Smith's explicit analysis in Book
    III, Chapter 1, where he systematically compares the relative advantages and disadvantages
    of different forms of capital employment. The specific advantages mentioned (security,
    visibility, risk) align closely with Smith's actual arguments about investment
    preferences.
- name: domain_placement
  value: 5.0
  max_value: 5.0
  rationale: The placement in "Accumulation" domain is correct, as this concept directly
    concerns how capital is allocated and accumulated across different sectors. This
    is fundamentally about capital formation and deployment decisions, which is central
    to accumulation theory.
- name: vsm_relevance
  value: 4.0
  max_value: 5.0
  rationale: This entity maps well to S4 (intelligence/environmental adaptation) as
    it concerns how economic actors gather information about and adapt to different
    investment environments and their relative advantages. It also has some relevance
    to S5 (policy) regarding strategic capital allocation decisions.
- name: explanatory_value
  value: 5.0
  max_value: 5.0
  rationale: This entity provides significant explanatory power by illuminating the
    underlying mechanism that drives Smith's "natural order" of economic development
    - showing how differential advantages across sectors create predictable investment
    patterns. It explains structural relations between risk assessment, capital mobility,
    and developmental sequences.
---

# Evaluation: Capital Employment Advantages

## definition_precision — 4.0 / 5.0

The definition clearly distinguishes between different types of capital employment advantages (security/control for land, visibility for manufacturing, risk for foreign trade) and connects them to investment decisions. It avoids circularity and captures a distinct analytical framework rather than a vague concept.

## source_grounding — 5.0 / 5.0

This entity is directly grounded in Smith's explicit analysis in Book III, Chapter 1, where he systematically compares the relative advantages and disadvantages of different forms of capital employment. The specific advantages mentioned (security, visibility, risk) align closely with Smith's actual arguments about investment preferences.

## domain_placement — 5.0 / 5.0

The placement in "Accumulation" domain is correct, as this concept directly concerns how capital is allocated and accumulated across different sectors. This is fundamentally about capital formation and deployment decisions, which is central to accumulation theory.

## vsm_relevance — 4.0 / 5.0

This entity maps well to S4 (intelligence/environmental adaptation) as it concerns how economic actors gather information about and adapt to different investment environments and their relative advantages. It also has some relevance to S5 (policy) regarding strategic capital allocation decisions.

## explanatory_value — 5.0 / 5.0

This entity provides significant explanatory power by illuminating the underlying mechanism that drives Smith's "natural order" of economic development - showing how differential advantages across sectors create predictable investment patterns. It explains structural relations between risk assessment, capital mobility, and developmental sequences.
