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

30 INTERNATIONAL TRADE gr Lt icans get for the day’s labor more linen than before — 1{% linen instead of 13. But they also get less wheat — 8; instead of 1. The gain in linen is considerable, the loss in wheat comparatively small. But are wheat and linen commensurable? And is it certain that the Americans secure a net gain from having more of linen when they also have less of wheat? The Germans, on the other hand, while they have less of linen — only % linen instead of 2 — have a bit more of wheat: they have +2 instead of 2. For them, also, 1s it certain that the loss in linen over-balances the gain in wheat? Their loss in linen is considerable, the gain in wheat is slight ; but the question for them, also, is how can these changes in the quantities of different commodities be reduced to common terms ? The only answer is that in terms of “utilities” (satisfactions, enjoyments, gratifications) both Germans and Americans have gained. In ultimate income, in terms of the psychological out- come, all are better off than before. This is shown by the simple fact of choice. As is assumed in the entire hedonistic calculus, it is choice between alternatives which alone shows whether we “like” or “enjoy” one source of satisfaction more than another. The Americans get less of wheat than they got before; but they have been led to accept that less amount because they have been tempted by the cheapness of linen. The fact that they give up some wheat in order to get more linen proves that the rearrange- ment suits them better, that their income in terms of satisfactions is greater than before. The Germans, too, while they have less linen than before, have more of wheat. Had it not been for their desire to have more wheat, they would not have parted with so much of their own product in order to get so small an addition of the American product. Given their changed demand, they are better off than before; they must like the present situation better than the earlier one or it would never have developed. The sense in which it can be said. then. that the new conditions 1 This is no more than an illustration of the general principle that under complete freedom the terms on which the trading parties exchange can not alter unless there be an advantage to both sides from the altered terms.

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