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# Navigation Acts

## Definition

Government regulations requiring that trade between the mother country and its colonies be conducted exclusively in ships owned, manned, and built by nationals of the mother country. These acts aim to secure maritime dominance and control colonial trade but often increase costs and reduce efficiency.

## Source Chapter

Book IV, Chapter 8

## Context

Smith discusses how navigation acts exemplify the mercantile system's preference for producer interests over consumer welfare. While intended to strengthen national maritime power, these restrictions often make trade more expensive and less efficient than it would be under free competition.

## Economic Domain

Regulation

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