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

Usage license:: Get license information via the feedback formular.

Chapter

Document type:: Monograph

Structure type:: Chapter

Title:: Part I. Theory

Collection:: Economics Books

WAGES AND PRICES IN DIFFERENT COUNTRIES 35 in one country and thence sent out to others — that all enter into foreign trade — it is more generally true that the goods made In a given country are sold and used in that country only. The conditions of international trade affect not the whole of a country’s trade but only a minor part of it. We must distinguish between the international and the domestic goods: those, on the one hand, which are the objects of import and export trade and are the same in price thruout the international field; and those, on’ the other hand, which are not imported or exported at all, and do not neces- sarily have the same price in one country as in another. What can be said of the prices of the domestic commodities? The essence of the answer to this question can be indicated by a simple illustration. Consider again the figures of the last case in the preceding chapter. In the U. S. 10 days’ pit U.S. ” Germany - " Germany 1U 9 Wages PER DAY » TorAL N AGES -) PRODUCE ® linen wheat ~ linen 0 wheat DomEesTIC SuppLy PrICE 80.75 30.75 $0.66% $1.00 Wheat and linen are international commodities, each produced solely in the country having the comparative advantage for it. Suppose now we have bricks, so bulky in proportion to value that cost of transportation is prohibitive. They cannot be shipped from country to country, but are produced in each country, and are sold in each quite independently. Wages being higher in the United States, most persons would say that bricks also must there be higher in price. But this is not at all certain to be the case; the converse is just as possible. Suppose that Wages Toran PRODUCE DoMmesTIC PER Day WaGEs SuprLy PricE [n the U. S. 10 days’ labor ~~ $1.50 $15 2000 bricks $0.75 per 100 ” Germanv 10 1 $1.00 $10 1000 bricks $1.00 per 100 We suppose, that is, the effectiveness of American labor in brick- making to be high as compared with the effectiveness of German labor in that industry. The United States has the same advantage over Germany in brick-making as she has in her export industry

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