International trade

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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

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Chapter

Document type:: Monograph

Structure type:: Chapter

Title:: Part I. Theory

Collection:: Economics Books

18 En INTERNATIONAL TRADE Va Jag in their several products; the countries of the temperate zone, and especially those of European culture, have similarly an absolute advantage, tho resting perhaps not so preponderantly on physical causes. That this is the sort of trade in which a gain accrues unmis- takably to both sides has long been admitted. So obvious, indeed, is the gain that no attempt has ever been made, at least by the peoples of the temperate regions, to hamper it by protective duties or other restrictions. But tho this much is readily perceived, few understand that trade of this kind offers not merely a possibility of clear gain, but a possibility of greatly varying apportionment of the gain; that it might be carried on under conditions quite different from those familiar to us, and still be to mutual advantage; and that the key to the apportionment of advantage is found in the money incomes of the people of the exchanging countries. The most striking concrete illustration is in the trade between Great Britain and British India. The trade is free (some recent restric- tions thru import duties are so slight as to be negligible). Money incomes are high in Great Britain, low in Indias Those goods which are exchanged between them — international goods — sell at virtually the same prices in both. Evidently the Englishman, with his high money income, is in a better position as purchaser of these international goods than is the East Indian with his low money income. But this is no necessary feature of the trade. It is quite conceivable, and quite consistent with the continuance of the trade, that the situations should be reversed : that the East Indian, not the Englishman, should have the higher money income and the greater share of the possible gain. And it is no less con- celvable that money incomes in the two regions should be the same, and the gain thus shared equally. The existing situation is not at all a necessary outcome from the given conditions, but only one among several possibilities; and the significant indication of the nature of the outcome which in fact has been reached is the differ- ence of money incomes between the exchanging countries.

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