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

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

Chapter

Document type:: Monograph

Structure type:: Chapter

Title:: Part I. Theory

Collection:: Economics Books

R2 INTERNATIONAL TRADE likely to be suited to profitable operation and what is not. It is true that accident, inheritance, early misjudgment, may start him in an industry which fails to give full scope to his abilities; and there are plenty of cases in which capable men, once started the wrong way, remain in the industry of first choice. But in the main it is otherwise. The business man of higher grade turns to operations that afford full scope to his abilities; and the more outstanding are those abilities, the less likely are they to be mis- applied to unfruitful industries. An excellent illustration of the consequences of this transfer- ability, and of the general theorem here advanced, is found in the working of protective duties. Suppose an industry to be fostered by protection; for example, the linen industry in the United States operating under conditions of comparative disadvantage such as are shown in our figures. Suppose then that the protective duties are abolished; will the linen industry disappear from the country? It is entirely possible that an examination of the expenses of production of the several linen-making establishments will show them to be producing at varying money costs. Some among them will be found to be producing so cheaply that they can hold their own, and continue to make ordinary profits, even under free trade. But these will be the superior establishments, managed with superior ability ; and their managers, even tho they meet their expenses of production and eke out a profit, will be get- ting a return less than in proportion to their powers. Sooner or later they will shift. The transfer to other industries will not take place easily or quickly, but in the end it will come. There may be in such a protected industry older men who, while capable, yet are too advanced in years for a complete change of base; and these will very probably remain where they are. But younger men of the same stamp will not be drawn to it; the industry will languish and in time will disappear. Still another aspect of manufacturing industries must be con- sidered. They are often said to present the conditions not of diminishing but of increasing returns. Is not our reasoning in

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