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

WAGES NOT UNIFORM — NON-COMPETING GROUPS 51 régime, with no non-competing groups and with prices adjusted in accord with labor costs in each country, the same result as obviously would ensue. Suppose now something like the usual industrial situation: not merely non-competing groups, but also laborers from different groups combined in the making of any one article. Suppose that in the United States there are some groups whose established pay is $1.50 a day, others whose established pay is $1.00 a day. In (Germany there are groups whose established pay is $1.00, others with $0.66%. In each country higher-paid and lower-paid laborers are joined in the making of linen, and are joined also in the making of wheat. For simplicity, suppose that in each industry one-half of the laborers thus combined are from the upper stratum, one-half are from the lower stratum. Then we have the following: [n the U. S. 10 days’ labor [n the U. S. 10 days’ iai [n Germany 10 days’ la’ [n Germany 10 days’ lab x WaGEs PER Day ~1 50 nn Bi 3 nN 2.60 Toi propre De $12.50 20 wheat $0.62% $12.50 20 linen $0.62% * 8.33 10 wheat $0.83 . 833 15linen $0.55% Observe the domestic supply prices of the two articles. Wheat is cheaper in the United States, linen is cheaper in Germany. Wheat goes from the United States to Germany, linen from Germany to the United States. Precisely the same sort of trade takes place as would be found if there were no non-competing groups. The general proposition to which this leads is simple enough, and indeed hardly needs to be brought out by figures. If the combinations of several sorts of labor, paid at varying rates, are the same in the two countries (the hierarchy of the groups being also the same), trade between them takes place exactly as if there were no internal differentiation at all — as it would if there were no non-competing groups. It is only a difference in the arrange- ment of the industrial hierarchy, not the hierarchy itself, that has effect on international trade. To change the simile, given

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