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

8 he be INTERNATIONAL TRADE BU eh a superior advantage in wheat; Russia has an inferior disadvan- tage. Tho the United States produces both wheat and cloth with less labor than England, the effectiveness of her labor is particularly great in wheat. With the same labor, the output of wheat is twice as great as in England (20 to 10), while that of cloth is only one-third greater (20 to 15). Russia has no superiority over England in either commodity; but she has equal effectiveness in wheat (10 to 10), with a less effectiveness in cloth (10 to 15). Russia and the United States, it is obvious, have no occasion to trade with each other. They present the simple case, already considered sufficiently, of equal differences in costs. The effec- tiveness of labor is twice as great all around in the United States as in Russia. Neither country would find it worth while to exchange with the other. The United States is the more prosperous, Russia the less prosperous. Were they alone, and England out of the case, neither would pay attention to the other; neither would be better off or worse off because of the presence of the other. The terms of trade possible under these conditions would be 10 of wheat for anywhere between 11 and 14 of cloth. These terms, that is, would be possible in trade between the United States and England, and also in trade between Russia and England. England would exchange with each of the others on the same terms. So far as concerns the gain ascribable to international trade, both the United States and Russia would be on a footing of precise equality : their income in terms of the cloth secured from England would be enlarged to precisely the same extent over and above what that income would have been without the trade. Express the same situation in prices and money incomes. As we have already seen, the double effectiveness of American labor as compared with Russian would cause money wages to be twice as high in the United States as in Russia; while the relations between the effectiveness of labor in England and in the other two countries would bring it about that money wages would be higher in England than in Russia, lower than in the United States. We may have, for example :

Access restriction

Copyright

fullscreen: International trade

Monograph

Chapter

Table of contents

Download

Monograph

Chapter

This page

Image fragment

Citation links

Citation recommendation