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# Colonial Dependency Structure

## Definition

The hierarchical relationship between mother countries and colonies characterized by political control, economic exploitation through monopoly, and military protection obligations. This structure creates mutual dependencies that often prove economically disadvantageous to both parties.

## Source Chapter

Book IV, Chapter 7

## Context

Smith analyzes colonial dependency as an inherently problematic relationship that creates economic inefficiencies and political tensions. He argues that the current dependency structure benefits particular interest groups while imposing net costs on both the colonies and the mother country.

## Economic Domain

Regulation

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