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<p>[QUOTE="fatima, post: 1129361, member: 22143"]Well you are giving a very hypothetical situation that doesn't exist to make a point. I would contend that a bottle of water close enough to the desert where you could charge $100 without incurring transportation costs, doesn't exist. If transportation was essentially free in your scenario, then the $100 demand won't be there because the party who is thirsty can always make the same trip you did. Why would you assume that you would have an advantage which the buyer didn't?</p><p><br /></p><p>(I will leave out for now that a nice single serving of clean water in a convenient plastic bottle is a manufactured item.) </p><p><br /></p><p>On your point about natural resources, I would disagree. Water isn't something that can be shipped around the world and sold. It's relatively easy to get even in desert countries and it is extremely heavy. On the other hand it should be clear enough that oil is a resource makes a country very wealthy. </p><p><br /></p><p>You also contradicted yourself. You said that a country with natural resources doesn't mean riches. However you then proceeded to give examples, with the presumption the country had a monopoly on the resource, i.e. Salt & Water, so they may charge monopolistic prices. It can't be both ways.[/QUOTE]</p><p><br /></p>
[QUOTE="fatima, post: 1129361, member: 22143"]Well you are giving a very hypothetical situation that doesn't exist to make a point. I would contend that a bottle of water close enough to the desert where you could charge $100 without incurring transportation costs, doesn't exist. If transportation was essentially free in your scenario, then the $100 demand won't be there because the party who is thirsty can always make the same trip you did. Why would you assume that you would have an advantage which the buyer didn't? (I will leave out for now that a nice single serving of clean water in a convenient plastic bottle is a manufactured item.) On your point about natural resources, I would disagree. Water isn't something that can be shipped around the world and sold. It's relatively easy to get even in desert countries and it is extremely heavy. On the other hand it should be clear enough that oil is a resource makes a country very wealthy. You also contradicted yourself. You said that a country with natural resources doesn't mean riches. However you then proceeded to give examples, with the presumption the country had a monopoly on the resource, i.e. Salt & Water, so they may charge monopolistic prices. It can't be both ways.[/QUOTE]
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