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

68 * INTERNATIONAL TRADE EW ell ue indefinitely, are indeed quite conceivable, just as marked differences in the range between the wages of the several non-competing groups of laborers are quite conceivable; and there might be corresponding results of some quantitative moment in international trade. But since, as a matter of fact, the differences in the interest rate between countries are not considerable, we are justified in concluding that this element in the economic situation, like the element of persisting differences in wages to different workers, does not lead to a radical modification of our first conclusions. There is more to be said, however, concerning the way in which the use of capital bears on international trade; there is another point of view. Tho the rate of return on capital may have no such marked influence as is often supposed, the fact that capital is used, and is used with far-reaching effects on the effectiveness of labor, has consequences in international trade which in turn are far-reaching. Capital and labor are often referred to as agents which compete in production. This form of statement, useful for some purposes tho it is, does not describe with accuracy what happens when capital is made and used. Capital is itself made by labor; and the use of capital simply means the application of labor in another way — by an indirect and prolonged process. When a workman uses a tool in making a given article, the total labor given to pro- duce the article includes not only what is done directly by the tool- user, but also a part of the labor of the tool-maker. If, for example, a tool is made by one man, and lasts just a year; and if another man then works with that tool during its year of life; then the resulting articles are produced by the labor of two men each working one year, or of one man working two years. Simi- larly, if 100 men work with machinery made by another 100 men ; and if the machinery lasts 5 years; then in any one of the five years, the labor given to the resulting product is that of 120 men. This much is a commonplace in economic theory. It was clearly stated long ago by Ricardo,! and was explained, elaborated, insisted on, by Bohm-Bawerk. 1 Ricardo’s Principles, Ch. I., Sections 4, 5.

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