INTERNATIONAL TRADE 153 
prices would fall in Germany and rise in 
England, and when the point was reached at 
which the prices of both commodities were 
the same in both countries there would be 
no advantage in sending either commodity 
abroad, because when sent abroad it would 
realise no more than it would fetch at home. 
Hence our first proposition is proved that 
comparative values must differ if there is to 
be permanent trade between countries. 
The second proposition to be enunciated and 
defended is two-sided : that when a position 
of equilibrium in international trade is reached 
(a) comparative values will be identical, and 
(b) in a given period the total value that a 
country exports will equal the total value 
that it imports, apart from cost of transport 
which we shall continue to ignore to expedite 
our argument. The prior section of this 
proposition is in reality a corollary from the 
first proposition laid down, for it is apparent 
that so long as a difference between compara 
tive values remains there will be a disposition 
on the part of business men in both countries 
to increase or decrease their exports. The 
existence of a difference between comparative 
values is sufficient evidence of the profitable 
ness of their doing so. At first, however, 
one may feel a difficulty in realizing how