Proceedings of the South & East African combined agricultural, cotton, entomological and mycological conference held at Nairobi, August, 1926

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Monograph

Identifikator:: 1738588467

URN:: urn:nbn:de:zbw-retromon-115043

Document type:: Monograph

Title:: Proceedings of the South & East African combined agricultural, cotton, entomological and mycological conference held at Nairobi, August, 1926

Place of publication:: Nairobi

Publisher:: East African Standard

Year of publication:: 1926

Scope:: VI, 337 Seiten; Ill.

Digitisation:: 2020

Collection:: Economics Books

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Chapter

Document type:: Monograph

Structure type:: Chapter

Title:: Part II. Agriculture

Collection:: Economics Books

02 INTERNATION AL TRADE demand ; both wheat and linen then move from the United States to Germany. III. Lastly, take an intermediate case — the intermediate case. Suppose the barter terms of trade to be 10 of wheat for 12 of cloth (less than 15 of cloth as in our first case, and more than 11 of cloth as in the second). Within Germany 12 of cloth are produced with the same labor as 10 of linen. The United States, sending 10 of wheat to Germany, and getting 12 of cloth in exchange, might indeed get also 10 of German linen in exchange. But 10 of linen are produced in the United States with the same labor as 10 of wheat; there is no gain to the United States. Germany might send 12 of cloth to the United States and would then receive in exchange 10 of linen. But 10 of linen and 12 of cloth are both produced in Germany with the same amount of labor (62 days); and there would be no gain to Germany. Neither country would find it worth while to send linen to the other. The only gainful exchange is that of German cloth for American wheat. The case is, in a sense, the mid-way or balancing one, that in which one commodity (linen) remains where it is, while the others move to and fro. This train of consequences from the play of varying demand is dependent on the total demand in each country for the products of the other. To speak more accurately, it is dependent on the state of demand among the inhabitants of the two countries for each and every one of the commodities which they might exchange. The Americans may care for cloth and linen so much, and for wheat so little, that they will offer wheat for the other two commodities on terms that make it worth while for the Germans to send both cloth and linen to the United States. Or, at the other extreme, the Americans may care for cloth and linen so little, and for their own wheat so much, that they will indeed take cloth in exchange for some wheat, but will take no linen; nay, may prefer to send some linen of their own make in exchange for cloth. These possible relations may now be expressed in terms of prices and money incomes. Let it be remembered, in considering the

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