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

CAPITAL AND INTEREST A SER eT ita bo JE 67 cation. Only so far as there is a peculiarity in the position of a particular laboring group; or so far as a commodity is produced in one country with a different labor group or assortment of groups from that which is utilized in another — so far only does this factor exert a modifying influence of its own. The investment of capital and the payment of interest on capital are to be regarded in the same way. No essential modification of the original analysis is called for, unless this factor in turn leads to price phenomena which are different for one commodity in a given country from those for the same commodity in another country. A higher or lower rate of interest, so far as it operates on a par- ticular commodity with greater effect in country A than in country B, has its influence in causing the price of that commodity to be different, relatively to other commodities, within the country; and thereby only does it have an influence of its own on inter- national trade. The quantitative importance of the capital charge factor in in- ternational trade is probably not great. As the whole tenor of the preceding exposition indicates, the range of its influence is restricted to a special set of circumstances. Within that range, its influence is further limited by the absence of wide inequalities in the rate of return on capital. Interest, while it does vary some- what from country to country, does not vary widely between the leading countries of western civilization; and it is in the trade between these, and in the competition between them for trade with other countries, that the interest factor is most likely to enter with its independent and special effects. The analogy to non-competing groups and laborers may again be applied. Capital may be regarded, if one pleases — of that I shall say a word presently — as an independent factor, competing with labor so far as concerns contribution to the output. But it does not compete with labor in the sense that there can be any equalization of sacrifice between capital and labor ; the two sacrifices (“abstinence” and work) being in their nature incommensurable.! Marked differences in the rate of return on capital, persisting ! As was long ago remarked by Cairnes, Leading Principles, Part 2, Ch. 5, § 3.

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