How is speculation like international trade?
A) Both discourage bubbles by creating the incentive to be correct.
B) Both link nations together.
C) Both smooth prices over time.
D) Both move goods from low-value places/times to high-value places/times

Question

Quizplus · Accepted Answer

Both speculation and international trade involve the movement of goods (financial instruments in the case of speculation) from low-value places/times to high-value places/times. In speculation, traders buy assets at a lower price in the hope of selling them at a higher price in the future. In international trade, goods are transported from places where they are cheaper to produce to places where they are more expensive to acquire.

How Is Speculation Like International Trade