Political economy

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Monograph

Identifikator:: 867647221

URN:: urn:nbn:de:zbw-retromon-93157

Document type:: Monograph

Author:: Chapman, Sydney John http://d-nb.info/gnd/123743141

Title:: Political economy

Place of publication:: London [u.a.]

Publisher:: Williams & Norgate [u.a.]

Year of publication:: 1912

Scope:: 1 Online-Ressource (255 Seiten)

Collection:: Economics Books

Usage license:: Get license information via the feedback formular.

152 POLITICAL ECONOMY trade cannot be opened between any two countries unless there is a difference between the comparative values of transportable things in each of them. I speak of com parative values instead of comparative costs so as to include the trade in things which are not, or cannot be, produced in one or more of the trading countries. By comparative values is meant the ratios of values in the two countries. Let us suppose there are two countries only and two commodities only, and for the sake of simplicity of exposition let us assume that both countries use the same kind of money, and that there is no cost of carriage. Then, if the countries are England and Germany, and the commodities are timber and steel, and these commodities fetch res pectively 20s. a ton and 40s. a ton in England, and 25s. a ton and 50s. a ton in Germany, a permanent trade cannot arise because in both countries steel is just twice as expensive as timber. Trade of a kind would appear in which England would export both steel and timber and import money, but this trade would come to an end as soon as the level of prices was the same in both countries, timber and steel realising respectively in both England and Germany, 22s. and 44s., let us suppose. Of course as money left Germany for England

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