I'm not sure, but I always thought that Orcs were stockier, stronger, and better fighters, and Goblins were smaller, craftier, and sneakier. I think that they live together in the Misty Mountains, but in Mordor there are mostly orcs. In The Hobbit, the dwarves had trouble mostly with goblins.
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"A man who flies from his fear may find he has only taken a shortcut to meet it.”
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