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 II. Problems of verification

Collection:: Economics Books

VERIFICATION. INTRODUCTORY 157 in the production of its own special commodities; it produces them with less labor than they would entail in Great Britain. And Great Britain — taking this in turn as the representative European country — produces its manufactures with less labor than would be needed to produce them in India. The relation is one in which an exchange of goods is obviously advantageous to both countries, but also — what is less often seen — one in which there is a wide range within which the barter terms of trade may vary. Those terms might bring to England the lion’s share of the possible gain, or might bring it to India. It is the relation of money incomes in the two countries that gives the indication — constitutes the mechanism — of the more or less advantageous positions of the parties. The country which has the higher range of money incomes gains most from the trade; that having the lower range gains least. In the actual case evidently England (Europe) has the greater gain, while India (the Orient) is in the less advantageous position. Presumably this difference in favor of England, to continue the explanation suggested by theory, is due to the play of inter- national demand. The Orient wants the goods of Europe more than Europe wants those of the Orient. To put the same thing in more technical terms, the make-up of the demand schedules in the two countries, reflecting the elasticity of demand for the several commodities, is such as to bring about terms of exchange under which much of Oriental goods is exchanged for a given quantum of European goods. And this result is in turn brought about by the distribution of specie. The higher range of European wages, prices, monetary standards, it is to be supposed, results from a steady tendency of specie to be gathered there. As changes take place in the total of specie that constitutes the medium of change thru the world at large, it is to be expected that a larger proportion will make its way to the countries of the West. The general tendency of the flow of specie might then be expected to be away from the East and toward the West. This generalization from the theoretic reasoning may well cause the reader to pause. The actual flow of specie. as we all know. is

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