International trade

Bibliographic data

Monograph

Identifikator:: 1758394757

URN:: urn:nbn:de:zbw-retromon-136209

Document type:: Monograph

Author:: Taussig, Frank William http://d-nb.info/gnd/120199459

Title:: International trade

Place of publication:: New York, NY

Publisher:: Macmillan

Year of publication:: 1927

Scope:: XXI, 425 Seiten; graph. Darst.

Digitisation:: 2021

Collection:: Economics Books

Usage license:: Get license information via the feedback formular.

Chapter

Document type:: Monograph

Structure type:: Chapter

Title:: Part I. Theory

Collection:: Economics Books

ABSOLUTE DIFFERENCES IN COST 13 we do not use the word at all when referring to the forces that act on money prices. In considering these we shall therefore speak of domestic supply prices only ; or, for brevity, supply prices. The German domestic supply price of copper is that at which copper would sell in Germany if there were no international trade at all, if copper were produced in Germany, and if its price were purely a domestic matter. Itis the price which the German producers must get in order to induce them to make that article. Similarly the domestic supply price of linen in the United States is the price which would rule in the United States if there were no trade between the countries — the price which Americans must get in order to induce them to make linen at all. A cursory inspection of the figures shows that the supply price of copper is lower in the United States ($0.50 there, $0.663 in Germany) while that of linen is lower in Germany (80.33% against $1.00 in the United States). The American producers of linen would be undersold by the German producers of linen ; the German producers of copper would in turn be undersold by the American producers of copper. American copper would be sold in Germany, German linen in the United States. The United States would produce no linen, Germany would produce no copper. Suppose now the difference in money wages between the two countries to be the other way — higher in Germany. Suppose German wages to be $1.50, American wages $1.00. Then we have : In the U. S. 10 days’ lah Pe 2 1. S ke My ” Germany Germanv WAGES PER DAY ToraL WAGES Propuce de > copper $0.33% linen 30.663 1» copper $1.00 30 linen £0.50 Here the same movement of goods takes place. Copper is cheaper in the United States than it could be in Germany ($0.33% there as against $1.00 in Germany) and will move thence to Germany. Linen is similarly cheaper in Germany ($0.50 against $0.662) and will move thence to the United States. In other words, it is quite possible that money wages will be higher in the United States or that they will be higher in Ger-

Access restriction

Copyright

fullscreen: International trade

Monograph

Chapter

Table of contents

Download

Monograph

Chapter

This page

Image fragment

Citation links

Citation recommendation