| Summary: | The above passage is indicative of the pervasive nature of trade. The importance of trade was recognized, not only by Mercantilist writers who gave it first place in economic development, but even the Physiocrats who relegated it to a subordinate position bad to pay attention to the fact that through trade a country must obtain the goods it cannot produce within its boundaries. Adam Smith also who gave priority to agriculture, stating that capital should first be used in agriculture and the excess invested in trade, paid attention to the benefits that can be derived from international trade. Smith was preoccupied with economic development in relation to the range of the market. The wider the market, the greater the chance for economic growth. He saw trade as the medium of growth via extended markets.
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