Capitalism, Market, Nation

In some cases, Smith characterizes the arena of Economic activity as 'the market', but, more frequently, as a 'nation'. The two are not equivalent in his system, for activity in the former is 'free', while that in the latter is delimited, to the advantage of domestic profitability. Now, reflecting the rise of Nationalism in 18th-century Britain, Wealth of Nations privileges domestic prosperity over foreign, though it is not as protectionist as Mercantilism. In contrast, more recent Capitalism has been more globalistic, e. g. NAFTA, the EU, the current TPP, etc. So, underlying the political tensions occasioned by these policy developments is the still unresolved inconsistency between Market and Nation in Smith's original model.