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 5 WAGES AND Prices IN DirreRENT COUNTRIES Domestic PRICES AND INTERNATIONAL PRICES In the preceding chapters the subject has been treated as if each and every commodity were within the range of international trade ; or rather, as if there existed no other commodity than those within its range. Wheat and linen (or copper and linen) have alone been considered. Assuming that the conditions found for these are representative — that other commodities are in the same general situation as they — we reach the conclusion that some things, such as wheat, will be produced solely in the United States, while others, such as linen, will be produced solely in Germany. The price of each article will be the same thruout the trading areas (barring of course the differences that may result from cost of transportation). The purchasing power of money in terms of goods will be the same in the two countries. Money wages, however, will not be the same. In the case se'ected as illustrative they were found to be higher in the United States. The extent to which they may be higher — the maximum divergence — depends on the extent of the advantage possessed by the United States in the commodity which she exports. Within this maximum, the actual excess of American wages depends on the play of demand between the two bodies of consumers. The fundamental features of the situation, so far as its analysis has been carried hitherto, are that prices are the same in the two countries. while money wages vary. But the supposition that all goods come within the range of international trade is not at all in accord with the facts. The scope of international trade is by no means all-embracing. So far from its being the case that each and every article is made solely 2 1

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