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

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Chapter

Document type:: Monograph

Structure type:: Chapter

Title:: Part I. Theory

Collection:: Economics Books

116 INTERNATIONAL TRADE NTN LH It will be observed that wages in the United States have fallen, but have fallen less than in the case just discussed: they have fallen from $1.70 (the figure at the original equilibrium) to $1.65, but not as low as $1.60. German wages on the other hand have risen, but not so much ; they have risen from $1.02 to $1.05, not to $1.15. At the prices thus figured out, suppose : U. S. exports to Germany 11 million wheat @ $0.82% = $9,050,000 ! Germany exports to U. S. 11.5 million linen @ $0.70 = $8,050,000 At the new price of $0.82% for wheat (lower than $0.85) Germany takes a greater quantity — 11 million bushels instead of 10 million ; and her total payment to the United States for wheat rises from $3,500,000 to $9,050,000. At the new price of $0.70 for linen (higher than $0.68) the United States takes a less quantity of linen from Germany — 11.5 million yards of linen instead of 12.5 mil- lion; and her total payment to Germany falls from $8,500,000 to $8,050,000.2 The new gross barter terms of trade, 7.e. the relation of all the United States wheat to the German linen, then become 11 wheat = 111 linen, or 10 wheat = 10.45 linen. Of the total export of wheat from the United States, however, a part only serves to pay the tribute of $1,000,000; the rest pays for the German linen. The apportionment of the wheat exports for the two purposes is: 1.2 million wheat at $0.82% for tribute = $1,000,000 9.8 million wheat at $0.82% for linen = $8,050,000 $9,050,000 The net barter terms of trade are then: 9.8 wheat = 11% linen, or 10 wheat = 11.8 linen Under the previous supposition, the net terms had been : 10 wheat = 10.4 linen The United States now gets terms more favorable than before — 11.8 of linen instead of 10.4 linen. 1 Approximately. 2 Tt will be borne in mind that an elastic demand means that at a lower price a greater quantity of units will be taken, and conversely at a higher price a less quan- tity.

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