Trade is a mutual exchange of goods and services; all parties must benefit for trade to be worthwhile. Thus, in order to sustain trade amongst nations, it must be structured to promote cooperation and equality.
Hard and Soft Currencies
A hard currency is a currency in which people have confidence. Conversely, a soft currency is a currency in which people do not have confidence. The distinction is simple enough, but what determines whether a currency is hard or soft? Confidence is a human emotion, and thus, the determination of hard or soft is fickle at best.
