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# CORPUS-0001
## Trade Requires Two Locations
### Status: Training Corpus Seed
### Layer: Layer_0--Primitive_Facts
### Purpose: Teach the first primitive of commerce: trade requires a difference between places
### Repository Path: docs/training/corpus/Layer_0--Primitive_Facts/CORPUS-0001-trade-requires-two-locations.md
---
<!-- chunk:
id: CORPUS-0001::whole::principle
source_file: CORPUS-0001-trade-requires-two-locations.md
repository_path: docs/training/corpus/Layer_0--Primitive_Facts/CORPUS-0001-trade-requires-two-locations.md
domain: commerce
layer: Layer_0--Primitive_Facts
document_id: CORPUS-0001
document_title: Trade Requires Two Locations
section_heading: whole document
chunk_role: principle
concept_tags:
- local_price
- origin_destination
- movement_cost
- information_delay
- arbitrage
knowledge_state:
- actor_visible
- inferred
actors: []
-->
## 0. Principle
Trade begins when the same good has different value in different places.
A trader does not create profit merely by owning goods.
A trader creates the possibility of profit by moving goods, claims, or information between locations where value differs.
---
## 1. Roman-Visible Example
Oil in Ostia and oil in Capua are not the same economic fact.
The oil itself may be identical.
But its value may differ because:
- one city has more supply
- one city has stronger demand
- one route is delayed
- one buyer needs it sooner
- one market has not yet heard news from the other
A trader sees two places, not one price.
---
## 2. Minimal Trade Structure
A trade requires at least:
1. an origin location
2. a destination location
3. a good or claim
4. a price or value difference
5. a cost of movement
6. time between decision and result
Without two locations, there is sale or storage, but not trade by route.
---
## 3. Incorrect Modern Assumption
Incorrect assumption:
> A good has one true price.
Correction:
> A good has local prices, and those prices change with place, time, need, and information.
---
## 4. Simulation Use
This principle supports:
- route design
- city price differences
- venture selection
- transport cost
- information delay
- arbitrage
- failed ventures
The model should not treat trade as a menu transaction.
Trade is a decision to act across distance.
---
## 5. Canonical Test
If the model sees:
> Buy oil for 10 asses. Sell oil for 14 asses.
It must ask:
- where was it bought?
- where was it sold?
- how long did movement take?
- what did movement cost?
- what changed during the journey?
Only then can profit be understood.
---
## 6. Success Condition
If the model stops treating price as universal and starts treating price as local, this file is functioning correctly.
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