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 7 CAPITAL AND INTEREST Stir another factor, that of capital and interest on capital, will now be considered. We have seen that while the mere shift from cost in terms of labor to supply price in terms of money wages did not modify our conclusion, the consideration of differ- ences in wages and of their influence on the money expenses of production did lead to significant modifications. So it will prove as regards interest on capital. Obviously this constitutes an item in the expenses of production; and it is one that has effects of its own. Yet these also are such as rather to modify the general conclusions reached on the simpler suppositions than to over- turn them. It is hardly necessary to remark that we need not consider separately such an item as the expense for materials — one that would bulk large in an accountant’s schedule. It is familiar in economic doctrine that expense for raw materials may be resolved into previous expense for wages and interest. For the purposes both of international trade and of domestic trade we bring together in one sum total all the costs and expenses involved for a given article; not only those of the immediate producer, but those of the antecedent persons from whom he buys materials and supplies, and whom he recoups (with interest) for their expenses in the way of wages and still earlier materials. In the same way, when we considered the principle of comparative costs in its simplest aspect (disregarding money expenses and prices) we attended to all the labor involved in producing an article, not merely that of the last stages in its production. Raw materials, then, may be brushed aside, as involving an embodiment of previous labor and a recapitulation of previous wages and interest. 61

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