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# Exportation Bounty

## Definition

A government subsidy paid to encourage the export of grain, particularly wheat. The bounty was designed to support agricultural prices and encourage production by making exports more profitable.

## Source Chapter

Book I, Chapter 11

## Context

Smith analyzes how the bounty on grain exports affected domestic grain prices and agricultural production, arguing that it raised prices in the home market and may have discouraged rather than encouraged tillage in the long run.

## Economic Domain

Regulation

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