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by blq10
1032 days ago
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Price discovery was brought up, but think about it this way - if Good A is plentiful in Market A and scarce in Market B - prices will be very high in B but cheap in A. Robber Baron Capitalist comes in and says "hey wait a minute, there's money to be made!" He starts buying goods in A, then selling them in B. This is a very, very stupid idea, your 5 year old could have it. So that means as soon as Business A figures it out, B , D, E, and F aren't far behind. The net for people in Market B is that now they don't pay the previous scarce price, but something closer to Market As, and more people can afford the good. This means that someone does all the work of building out all that logistics for us, simply to exploit the price differential. |
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