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

32 INTERNATIONAL TRADE German prices and in money incomes will go on until the eventual limit is approached when there is no longer any gain at all to Germany from the exchange. In the United States, on the other hand, the extent of the readjustment will be affected by the state of her demand for linen. If that demand is elastic — if her people buy more linen quickly as the price begins to fall — the movement of specie into the United States will be less great than it would be if the demand were inelastic. The rise in prices and in money incomes will be less, the alteration in the barter terms of trade less markedly to the American advantage. Something must be added to this. It is not merely the character of the American demand for German goods that has to be con- sidered. Regard must be had also to the demand schedules of the Americans for their own product, of the Germans for theirs. When German linen falls in price, the Americans, while tempted to buy more linen, must consider the fact that in order to do so they must dispense with some wheat which they have been con- suming. And the Germans on their part, when American wheat rises in price, have to consider that their payment of an additional price for the wheat necessarily involves a diminution in the amount they can spend on their own linen. In other words, the supposition of the preceding paragraphs tacitly included the assumption that the Germans did experience this sort of double change in their demand schedules. When the German demand for wheat increases, as was assumed above, that very change necessarily implies that the German demand for linen is less insistent than before. They care more for wheat and less for linen. Analogous, tho not quite the same, is the position of the Amer- icans. They are offered more of linen than before for a given quantity of wheat, and have to decide whether they will take more linen and consume less of their own wheat. The character or intensity of their demand for the two articles is not supposed to have altered. It is only that, with demand schedules unchanged, they are called on to use less of wheat and to buy more of linen. While the outcome depends in both countries on the double aspect

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