CONCLUSIONS,

371

On the other hand, prices to the domestic consumer may, in some
instances, be raised through an increase of exports brought about by
encouraging producers to seek a broader market for American products.
 The rise may be either temporary or permanent, according to
the particular circumstances under which the commodity is produced;
but in either instance it will be the result simply of increased exports.
The domestic price for certain manufactured goods might be temporarily
 raised, but be followed by an increase of productive capacity,
which would augment the supply and bring down the price. Should,
however, the commodity be a raw material of the kind that increases
in cost per unit as the quantity is increased, or a manufactured
article in which such raw materials are the principal factors of cost,
then there is likely to be not only a temporary but also a permanent
rise in both the domestic and export prices. This would happen
regardless of whether the increased exports were due to export combinations
 or to other causes.
When competitive forces are given free play price adjustments of
this character have been the rule in the past and will continue to be
in the future. They are a consequence of the broadening of a local
market for a commodity into a national and eventually into a world
market. An increase in facilities for developing the export trade will
merely accelerate the period of transition in the same general manner
as would result from an increase in facilities of transportation in any
region of supply by furnishing a link between demand and supply,
and thereby giving the supply an increased value.
The foregoing discussion relates solely to commodities in which the
prices are fixed by competition. Any increase in the domestic price
due to actions in restraint of trade to which American firms might be
parties, including any accomplished through participation in so-called
international agreements between themselves and foreign firms, can
and must be dealt with, as already stated, under the provisions of the
antitrust laws.
One of the most common statements made about export trade—
that of other countries as well as that of the United States—is to the
effect that large producers or combinations of producers frequently
sell cheaper to their foreign than to.their home customers. In any
consideration of tariff problems, this is an important matter; but so
far as it concerns export combinations, only one fact need be pointed
out. Probably the most prominent example of a country which
has followed the policy of pushing its foreign trade by making export
prices lower than its home prices is Germany. But Germany freely
permits combinations in its home market. This facilitates the exaction
 of high prices in its domestic market, which is one of the principal
conditions enabling such combinations to sell at very low prices in
export trade. The fact that the law of this country prohibits such