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

TRIBUTE AS EXAMPLE 117 Obviously, however, the United States gets terms which still remain less favorable than they were at the outset. We started, it will be remembered, with barter terms of trade such as to divide equally between the two countries the possible gain from the trade — 10 wheat for 12% linen. The new terms just worked out, tho more favorable to the United States, are still not so favorable as those from which we began: the United States still gains less than at the outset. The terms will be again shifted, and in the same direction, if we suppose the German demand for wheat to be still more elastic, and the American demand for linen still more elastic. All the figures will then be correspondingly modified — higher price of wheat, lower price of linen, higher money rates of wages in the United States, lower money rates of wages in Germany. But the rates of wages in the United States will always be lower than they were before the tribute payment set in, the German rates always higher. The barter terms of trade, again, might be but little less advantageous to the United States than before; they might be almost as much as 125 linen got for 10 wheat ; but they would never be quite so much. The barter terms might be 12.2 or 12.4 linen for 10 of wheat, but so long as the annual remittance of $1,000,000 was necessary and no other new factor intervened, could never be 12.5. The United States always would have not only to pay the tribute, but would have to exchange its exports for its imports on less favorable terms. “Less favorable terms.” A distinction is to be drawn with re- gard to the significance of this designation according as it is applied to the sort of situation here analyzed, or to that arising from a mere change in demand. The latter case, that of a change in demand, was considered in a previous chapter.! It was there pointed out that a change in demand is a voluntary act, or rather change of attitude, on the part of one or both of the exchangers. When the demand schedule, for example, shifts in such manner that at the same price more of a commodity is bought than before — if the demand curve moves to the right — the change means that people 1 See Ch. 4. pp. 26-33.

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