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

TWO COUNTRIES COMPETING IN A THIRD 101 The barter terms of trade, that is, become 19 wheat for 20 cloth, or 10 wheat for 10 cloth — very nearly 10 for 105. Before the increase in demand for cloth set in, the barter terms of trade had been 10 wheat for 12 cloth ; they are now 10 for 103. The English get the same quantity of wheat for a less quantity of cloth; they get a larger share than before of the possible gain from the trade. It matters not, to repeat, whether the change in demand takes place solely in the United States, solely in Russia, or partly in one and partly in the other. An increase of Russian demand operates to make the terms less favorable to the Americans, even tho in the United States alone nothing has happened that would change the situation. This sort of case, in the two possible phases here worked out, serves to illustrate a general proposition which played its part in the exposition of the classic doctrine. “There are two senses in which a country obtains its commodities cheaper by foreign trade; in the sense of value and in the sense of cost.” ! In the sense of cost, the United States thruout is getting its linen cheaper than Russia. In the sense of value, both the United States and Russia get the English linen on the same terms. Cheapness in the sense of costs depends on the amount of labor given to the exported commodities ; this is less in the United States than in Russia. Cheapness in the sense of value depends on the barter terms of trade between the exports and the imports; at any one time this is the same for the United States and for Russia, but varies at different times according to the conditions of demand for wheat on the one hand, for linen on the other. Obviously it is more probable that the barter terms of trade will be favorable to England and that she will get her imports (wheat) cheaper in the sense of value, if there be not one country buying cloth from her but two or more. The greater the number of pur- chasers of her cloth, the larger the quantity that will be taken at a given price. If the other two countries, United States and Russia, have the same population and are alike in the demand of their peoples (in their demand schedules) for cloth, then the two of them 1 Mill, Principles. Bk. 3. Ch. 18.

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