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 6 Wages Nor UNiForM — NoN-CoMPETING GROUPS IN the present chapter, a qualification will be introduced. It is not so much a correction as an elaboration ; another of the steps which are needed in order to bring the theoretic analysis more nearly into accord with the facts of trade. It is one, moreover, to which virtually no attention has been given in the literature of the subject. [n the reasoning of Ricardo and Mill, it was almost always assumed that within a country commodities exchanged in pro- portion to the quantities of labor necessary to produce them. Goods exchanged par for par in terms of labor. In our own very first suppositions — those of trade conducted under barter — it was assumed that if in the United States 10 days’ labor pro- duced 20 of wheat and 20 of linen, wheat and linen would of course exchange within the United States at the rate of 1 wheat for 1 linen. And in Germany, if 10 days produced 10 of wheat and 15 of linen, 1 of wheat would exchange for 1} of linen. It was the very fact that within each country the relative values of goods depended on labor expended which led to the possibility of trade between the countries, and to the special problem of the terms on which they might barter their products. Similarly, when exchange thru the medium of money came to be taken up, the prices of goods within each country were supposed to depend on the labor given to making them — on their cost of production in the sense of labor applied. If 10 days’ labor produced in the United States 20 wheat and 20 linen, wheat and linen would sell for the same price; with American wages at $1.50, each would sell for $0.75. If 10 days produced in Germany 10 wheat and 15 linen, wheat and linen would not sell for the same price; with German wages at 13

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