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

THREE CASES - ) In the United States the effectiveness of labor in producing copper is twice as great as is that of labor in producing copper in Germany; cost is one-half as great. In Germany, on the other hand, the effectiveness of labor in producing linen is twice as great as it is in the United States for that article; cost (of linen) again is one-half as great. Each country has an absolute advantage over the other in the production of one of the commodities. Case II. EquaL DIFFERENCES RA i. 8 In the U. S. 10 days’ labor produce 30 lbs. copper re 0.8.10 5" £4 » 15 yds. linen ” Germany 10 7” , " 20 lbs. copper " Germany 10 x 3 10 yds. linen Here cost is lower in the United States than in Germany — the effectiveness of labor is greater — as regards both commodities, and in equal degree for both. The ten days produce 30 of copper in the United States, 20 in Germany. The ten days produce 15 of linen in the United States, 10 of linen in Germany. Labor is more effective in the United States all around by fifty per cent. Case III. CoMPARATIVE DIFFERENCES (a) In the U. 8S. 1" dav-" labor nroduce 30 Ibs. copper 3 NUS ® vds. linen ” German hn. copper ” Germany '~ linen (b) In the U. 8 © copper 2. U.S. -. linen ” Germany - copper ” (Germany vas. linen Case ITI has two variants. In variant (a) the American effec- tiveness of labor is greater than the German in copper (30 to 20); whereas in linen there is no difference (15 in both countries). Considering the whole situation, the United States is the more fortunate country; but it is her better fortune in copper that alone makes the difference. In variant (b), however, the United States has lower cost and oreater effectiveness for both commodities, but not to the same

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