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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Document type:: Monograph

Structure type:: Chapter

Title:: Part I. Theory

Collection:: Economics Books

CHAPTER 3 EQuaL DirFrFereENCES IN CosT THE figures representing Case II, it will be remembered, are * In the U. S. 10 days’ labor produce 30 copper Pu. ? U.S. 10." 3 fi 15 linen ” Germany 10 ” n 2 20 copper " Germany 10 ” D a 10 linen Cost in terms of labor is lower in the United States for both articles ; labor 1s more effective all around by 50 per cent. Then we have: In the U. S. 15 linen = 30 copper 10 linen = 20 copper In Germany { 15 linen = 30 copper | It is obvious that no gain can accrue to either country from a direct exchange of goods for goods. In both, linen and copper, if produced within their respective limits, would exchange on the same terms. The labor that would produce 15 linen in the United States would produce in that country 30 of copper. Precisely the same 1s the case in Germany. If Germany were to take the product of 10 days’ labor in linen (10 of linen) and carry this amount to the United States, she would there get, at the American terms of trade, 20 of copper; and that amount of copper the same 10 days of labor will enable Germany to produce. Similarly, the United States could gain nothing by sending copper to Germany for exchange against linen. It is further obvious that the people of Germany would pre- sumably find it to their advantage to transfer themselves en masse to the United States. I say presumably; the advantage would not necessarily be realized. True, Germany is the less prosperous country ; labor is less effective all around than in the United States; 19

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