I always took it as goblins lived in the mountains while orcs were more free range. Thay are the same thing but their have adapted to their enviroment. Goblins were smaller so thay could move better in smaller places which would give them the advantage or being underground. Orcs were bigger so thay could dominate things around them. Hey i could be very wrong in this but oh well.
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Not all who wander are lost.
-Tolkien
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