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

EQUAL DIFFERENCES IN COST 21 The prices of both goods are lower in Germany than in the United States. Copper and linen alike would be exported from Germany. Specie would flow from the United States to Germany ; prices would fall in the United States and would rise in Germany. Suppose now that wages are still $2.00 in the United States, but are at the same rate in Germany — $2.00. Then we have prices in the United States as before. But now — WAGES TorAL DoMmEesTIC PER Day WAGES Propuce SuppLy Price In Germany 10 days’ labor $2.00 $20 20 copper $1.00 ” Germany 10 ” 2 $2.00 $20 10 linen $2.00 All prices now are higher in Germany than in the United States. Both copper and linen would be sent from the United States to Germany, specie would flow from Germany to the United States, prices would fall in Germany and rise in the United States. Lastly, suppose wages in the United States to be $2.00, in Germany $1.33%. Then we have (for ready comparison the United States figures are presented again) In the U. S. 10 days’ labor pe U.S. 10 7 ” Germany 10 ” ? ” Germany 10 7” 3 WaGEs PER Dar £2 00 29 (1) $..23 21.33! Tora EXT » PRODUCE ~nmN Hnen DomesTIC ‘UPPLY PRICE 1663 1 2 lL An2 > il - The price of each commodity is the same in the two countries. Copper sells for $0.663 in the United States and in Germany too. Linen sells for $1.33% in Germany and in the United States too. Neither article will move from one country to the other. There 1s no trade between them. In other words, under the conditions of equal differences in cost, money wages will adjust themselves exactly to these differences. The effectiveness of labor in the United States is to that in Germany as 3 to 2; money wages in the United States are to those in Ger- many as 3 to 2. Prices of goods are the same in the two countries. The people of the United States, with their higher money wages, will be able to buy more goods for the wages of a given amount of labor — one day’s or ten days’ — than the Germans can buy with

Access restriction

Copyright

fullscreen: International trade

Monograph

Chapter

Table of contents

Download

Monograph

Chapter

This page

Image fragment

Citation links

Citation recommendation