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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Document type:: Monograph

Structure type:: Chapter

Title:: Part I. Theory

Collection:: Economics Books

CHAPTER 8 VARYING Costs; DIMINISHING RETURNS; INCREASING RETURNS THE reasoning of the preceding chapters has been based on the assumption that the cost of each and every article is uniform. Changes in the volume of output were supposed to have no effect on the cost per unit. But costs are not necessarily uniform ; they are subject to variation according as the total product is large or small. It is incumbent on us to consider the influence on international trade of costs thus varying. In analyzing this sort of situation I shall return to the highly simplified suppositions made at the start, neglecting the compli- cations and qualifications which have been dealt with in the chapters immediately preceding. That is, labor cost in its simplest form will be considered, uniformity of wages assumed between the laborers (no non-competing groups), capital and a return to capital disregarded. These other factors — which we have seen not to be of such fundamental importance as that of effectiveness of labor — will serve to qualify the conclusions no more and no less than before. Return once more to the illustrative case already used, showing differences in comparative cost, namely : In the U. S. 10 days’ labor produce 20 wheat Pa 02 TLS 1G 2 2 ?” 20 linen ” Germany 10 ” ” ” 10 wheat ” Germany 10 ” 15 linen The United States has a comparative advantage in the pro- duction of wheat; linen will move from Germany to the United States, wheat from the United States to Germany. The barter terms of trade between the two countries will be 10 of wheat for somewhere between 10 to 15 of linen — 11, 12, 13, 14 linen. The TR

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