International trade

Bibliographic data

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

Usage license:: Get license information via the feedback formular.

Chapter

Document type:: Monograph

Structure type:: Chapter

Title:: Part I. Theory

Collection:: Economics Books

78 INTERNATIONAL TRADE = ol very best German lands, those on which 10 days of labor yielded 15 of wheat, could always hold their own against American compe- tition. Those on which the yield was less than 15 might or might not succumb under American competition. The continued cul- tivation of wheat on them would depend on the terms of exchange between the two countries. If the terms were 14 of wheat for 10 of linen (favorable to Germany), only those German lands which pro- duced as much as 14 could continue in face of American compe- tition; those on which the yield was less than 14 (13, 12, 11) would find themselves forced out. If, on the other hand, the terms of exchange were not favorable to Germany — if she got for her 10 of linen only 11 of wheat — a poorer grade of German land could continue the production of wheat. The more wheat the United States gives in exchange for linen, the more will Germany restrict her production of wheat to those lands on which her labor is least ineffective. That is, where it is least ineffective compared with American labor in wheat-raising; most effective, compared with other German labor in wheat. Barter terms of trade which are favorable to Germany will mean that the conditions are not favorable for the maintenance of her wheat production. Obviously this means also that the rent of wheat lands in Ger- many depends on these same terms of trade. If the terms are unfavorable to Germany, — if she gets but 11 of American wheat in exchange for her 10 of linen — the wheat-growers on her poorer lands will remain in the market, and the differential advantage of the better lands will be little impaired. Their rent will be the excess of product over 11 of wheat, instead of the excess over 10; the margin of cultivation will move only from 10 to 11. But if the terms are favorable to Germany, — if she gets 14 of wheat for her 10 of linen — more of her wheat lands will be forced out of culti- vation, and those which continue to grow wheat will afford less rent. The grade on which 14 wheat are produced for 10 days of labor will afford no rent at all; that on which 15 wheat are pro- duced will afford a rent of only 1. Under a régime of prices all these results will work themselves out as they would under a barter régime. If the terms of trade are

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