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

FREIGHT CHARGES 137 the trade of two countries only. Suppose that between these two the shipping trade is equally divided, the goods being carried half in the vessels of one of them, half in the vessels of the other. The charges for shipping thus cancel each other in the balance of international payments, and in any calculation of what may be due from one country to the other they may be disregarded. Sup- pose now that the merchandise exports and imports also balance, and that there is thus a settled equilibrium in the total account. Nevertheless, under the usual practice, each country would show in its official statistics an excess of imports; each would apparently have to make a remittance to the other in order to balance the international account. The shipping charges are ignored in the statistics of both as regards carriage one way; but as they are equally divided between the countries, the omissions cancel. An international trade account which on its face seems to be doubly unstable, indeed incomprehensible, is in fact stable and simple. Now suppose not that the shipping trade is equally divided between the two countries, but that all the carriage is done in vessels of one of them. Take for example Great Britain and Australia. Both keep their statistics in the usual way, but the carrying is all done in British vessels. The actual position of Australia in the international account will then be in accord with that shown by her trade statistics; but the actual position of Great Britain will not. Australia in fact has to pay Great Britain not only for the British goods imported, but for those goods as delivered in Australian ports, i.e. plus freight. She receives from Great Britain only the value of her own export f.0.b. (not including freight). If then her official statistics show an excess of imports (as in the case considered in the preceding paragraph), this indicates that in fact a balance must be paid to Great Britain, and specie must be sent in settlement. If, however, her exports as recorded, so far from being less than the imports, appear to equal them, there will be an established equilibrium. Only when the exports f.o.b. equal the imports c.i.f. will there be a settled balance of payments for a country which does no shipping of its own and keeps its official statistics on the usual plan.

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