Simplified Wealth of Nations by Adam Smith, Book 4, Chapter 2a: Import Restraints

Chapter 2a: The Restraints on foreign imports which can be produced at home

1 The monopoly of domestic industry is secured through high duties or import bans of foreign goods which can be produced at home. 2 The home-market monopoly greatly encourages the industries which enjoy it.

3 The general industry of society can never exceed what the capital of the society can employ.

4"Every individual is continually exerting himself to find out the most advantageous employment for whatever capital he can command."

  1. 5 Every individual endeavours to employ his capital as near home as he can.
  1. 7 Every individual who employs his capital to support domestic industry necessarily tries to direct that industry so that its produce may be of the greatest value.

The Invisible Hand

9 The annual revenue of every society is always precisely equal to the exchangeable value of the whole annual produce of its industry.

10 Every individual can, in his local situation, judge much better than any statesman on what domestic industry his capital produce the greatest value. Smith's Comparative Advantage 11 To give the monopoly of the home-market to any domestic industry is to direct private people how they should employ their capitals. 12 The prudence in the conduct of every private family cannot be a folly in the conduct of a great kingdom. 13 By such regulations, a particular manufacture may sometimes be developed sooner. 14 Even if a society fails to develop a certain manufacture because of the lack of the needed supporting regulations, it would not be necessarily poorer. 15 The natural advantages one country has over another in producing particular commodities are sometimes so great that it is in vain to struggle with them.
Next: Chapter 2b: Free importation