Handbuch über die wirtschaftlichen Verhältnisse Marokkos und Persiens, sowie ihrer Nachbargebiete

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Monograph

Identifikator:: 1688114769

URN:: urn:nbn:de:zbw-retromon-105106

Document type:: Monograph

Editor:: Davis, Trietsch

Title:: Handbuch über die wirtschaftlichen Verhältnisse Marokkos und Persiens, sowie ihrer Nachbargebiete

Place of publication:: Berlin

Publisher:: Gea Verl.

Year of publication:: 1910

Scope:: 174 Seiten; Illustrationen

Digitisation:: 2020

Collection:: Economics Books

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Chapter

Document type:: Monograph

Structure type:: Chapter

Title:: Teil II. Persien und seine Nachbargebiete Afghanistan-Belutschistan

Collection:: Economics Books

ABSOLUTE DIFFERENCES IN COST 17 This last supposition is in accord with what we should expect to find, and in the main do find, in trade within the bounds of a homogeneous country — in domestic trade. If we suppose the two regions to be, for example, New York and Pennsylvania, equality of money wages may be expected, and thereby equality of gain from the trade between them. Marked divergence from such equality would lead to a movement of population from one to the other, and eventually to an equal sharing of the gain. This result is dependent, it need hardly be said, on effective homogeneity between the peoples of the two regions ; the inhabitants of both are able and willing to move as freely between the regions as within them, and can apply their labor as effectively in the one as in the other. It is hardly necessary to point out that such an equal sharing of gain, with equality in money wages, does not imply an equal dis- tribution of population between the two regions. New York or Pennsylvania might have very different numbers. That one of them which produced the commodities most in demand would have the larger population; the other would have the smaller. The volume of output both for copper (say) in Pennsylvania and for linen in New York would adjust itself to the conditions of demand for these articles in the two states, and the distribution of workers between them would adjust itself accordingly. The free move- ment between them which brought about the equality of wages would bring about (probably) an unequal distribution of popula- tion and a distribution shifting with changes in demand. It is the absence of free movement, and the consequent fixity of each population, that causes something other than equality of remuner- ation to determine the share which each region shall secure of the possible gain from trade. That other factor, as will appear in the sequel, is the state of demand in the two countries for their several products. The type of international trade considered in this chapter — that in which there are absolute differences in cost — is found mainly in the trade between tropical and temperate countries. The tropical countries have an absolute advantage, because of climatic conditions,

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