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

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Chapter

Document type:: Monograph

Structure type:: Chapter

Title:: Part I. Theory

Collection:: Economics Books

[18 INTERNATIONAL TRADE Rar CY. Fn Re are ready to pay a higher price for a given quantity, simply be- cause they get greater satisfaction from that same quantity than they got before. True, they give more of their income for each unit of the commodity than they gave before, and in that sense may be said to buy it on less favorable terms. But there is no hedonistic loss; merely the registration of a different state of mind. And similarly when the people of one country choose to give more of their own goods in exchange for those of another country, the barter terms, stated as physical equivalents, become less favorable; but they do so merely because wants have changed and are now satisfied in a different way. The case of a tribute is different. Tho the demand schedule in the tribute-paying country remains unaltered (as was assumed in the first part of this chapter) the barter terms become less favor- able. Whether we look at the gross or the net terms, the tribute causes it to give more of its own goods, unit for unit, in the exchange for the goods of the other country. It can not console itself, as in the other case, by the reflection that after all this 1s precisely what its own changed state of mind has brought about. The only consolation is that it still gains from the trade. The goods which it sends out in payment for its imports still cost it less labor than would be needed for producing the imported goods at home. True, less of the imports are got in this exchange than would have been got if there were not the extra payment. But to continue the trade is the best way out of a bad business. The case of a tribute is extreme ; and for that very reason it has here been examined. It stands for a pure payment without quid pro quo. At the opposite extreme are payments, also standing for “ invisible” items, where the country to which the payments are made and to which the additional goods flow does give in exchange something, even tho not visible goods; where there us clearly a quid pro quo. Commonly enough, in the discussion of this aspect of international trade, all the invisible items are lumped together, as if all had the same meaning and the same effects. Not so; they differ. To take a case analogous to a tribute, and nowadays familiar, reparation or indemnity payments stand for one sort of effect ; whereas payments

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