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# Alien Merchant Duties

## Definition

The special tariffs and restrictions imposed on foreign merchants operating within a country's borders, designed to protect domestic merchants from foreign competition by making it more expensive or difficult for alien merchants to conduct business.

## Source Chapter

Book IV, Chapter 3

## Context

Smith cites these duties as examples of how mercantile interests secure protection through government policy, arguing that such restrictions harm consumers while benefiting a small group of domestic merchants.

## Economic Domain

Regulation

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