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

TOURIST EXPENSES woul, hal A 119 which arise from the expenditure of tourists in foreign countries stand for quite another. Payments connected with foreign loans stand midway ; and this whether we consider the initial lending of the principal amount by the creditor country or the subsequent payment of interest by the debtor country. I shall say something of loan and interest payments in another connection.! For the present, by way of elucidating the essential differences between the several sorts of cases, we may consider a case which stands at the opposite extreme from tributes or indemnities — that of tourist expenditures. The expenses of Americans who travel abroad form a large item in the balance of payments of the United States. They give occa- sion to remittances to foreign countries, and, thru the process just explained, tend to cause merchandise exports to exceed imports.? This item, if it were the only transaction other than sales of goods — the only invisible item — would bring about a balance of trade “favorable” to the United States. As regards the physical goods exported and imported, the situation of course would not be favor- able to the United States; the relation of American incomes to foreign incomes, and the barter terms of trade would become less advantageous to the United States than before. So far the case is the same as with a tribute. Obviously, however, there are differences. In return for the additional commodities exported — the excess of exports — the Americans get not indeed imported goods, but the pleasures of travel. Taken as a body, they prefer these pleasures to the enjoy- ments which would have been yielded by the exported goods, or by their equivalents, if consumed at home. To state the same thing in another way, the American tourists, by spending abroad, cause American labor to be turned to making exported commodities, rather than to making such commodities as the travellers would have purchased if they had remained at home. There can be here no question of a loss, such as a tribute would entail : it is merely a 1 See below, Ch. 21, pp. 254-262. ? See below, Ch. 24, p. 295, for a consideration of the part which this item plays in the international trade of the United States.

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