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 III. International trade under inconvertible paper

Collection:: Economics Books

DISLOCATED EXCHANGES FURTHER CONSIDERED 365 point where it stood before). Steel tends to become cheaper in the United States, and the people of the United States get a larger physical quantity of steel than before. The barter terms of trade are modified in favor of the United States. The deus ex machina is able to maintain its wonder-working efficacy during the period of transition only. Still another possibility, nay probability, has now to be con- sidered. Cotton has been treated as the only article of export from the United States, or rather as the representative and type of all the exports. In fact, however, every country exports a number of different articles. Each article has its own demand schedule, at home and abroad; each is subject to changes in demand quite independent of changes in demand for other articles. [t is highly improbable that at any one time an increase of demand will take place for all the articles of export from a given country. When such an increase takes place for any one of the exported goods, the others are also affected under dislocated exchanges, but in a way quite different. As regards the exported goods for which the conditions of demand are unchanged, the new rate of foreign exchange operates as a check or restriction. It does so, at all events, in the first stages. The sterling exchange which the sellers of such goods have for sale commands a lower price than before, and they do not have the compensating circumstance that their goods sell in Great Britain for a higher price than before. In other words, these exports feel a chill because of the decline in sterling exchange which follows from the offerings of other ex- porters whose sales to foreigners do show an increase. And the consequence must be a lessened volume of those other exports. That decline in volume, again, is presumably no more permanent than is the initial decline in sterling exchange. It is part of a general process of readjustment, resulting eventually in a modified and settled rate of exchange (one settled in the sense of remaining constant so long as conditions do not again change) and in modified barter terms of trade. It is hardly profitable to follow out the altimate possibilities as regards the exports not affected by the increase of demand. Like many other theoretic possibilities they

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