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# Bullion Transportation Cost Advantage

## Definition

The economic benefit of using gold and silver for international trade due to their high value-to-weight ratio, which makes transportation costs relatively low compared to other commodities. This characteristic makes precious metals the most efficient medium for facilitating foreign trade.

## Source Chapter

Book IV, Chapter 6

## Context

Smith explains why gold and silver are preferred for international trade by comparing their transportation costs to other commodities. Their small bulk relative to value makes them more efficient for moving value across distances than bulkier goods.

## Economic Domain

Exchange

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