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

FREIGHT CHARGES 135 sideration. Freight charges, to repeat, constitute items in the international account, essentially like the purchases and sales of merchandise, and are settled as promptly as these. The mere payment of them no more constitutes a source of loss to the pay- ing country than does its payment for imported goods. The possible effects of transportation charges on the barter terms of trade was the occasion for discussions and distinctions which held a considerable place in the older literature of the subject and may be briefly mentioned. There is an obvious gap (as has been noted) between the sum which the exporter receives for his goods, and that which the importer pays for those same goods: the gap standing for the transportation or freight charge. The price which the importer pays, and which he then charges to the consumer, is higher than it would be if there were no freight charge at all. Consequently the amount which the consumer purchases will be different from what it would have been if the price had not been so raised. This reaction of price on quantity demanded takes place on both sides; in our supposed case, it takes place among the purchasers both in Great Britain and the United States. The British buy less than they would have bought if there were no expense of transport; the Americans likewise buy less. But the effect on demand will not necessarily or probably be the same on both sides. It is not likely that the elasticity of demand for imported goods is the same in the United States for British goods as it is in Great Britain for American goods. The barter terms of trade, then, under the interplay of mutual demands, will be different from what they would have been in the absence of transportation charges — different from what they would have been between quite contiguous countries. In this sense, and in this sense only, it can be said that freight charges do not neces- sarily constitute an unalloyed burden on the receiving (importing) country, but may be borne in part by the despatching (exporting) country; indeed, conceivably borne by this country in whole. The price of every imported article is higher to the purchaser in the importing country by the amount of the transportation charge ; in this direct and obvious sense the charge is borne by the importing

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