CHAPTER 9
VARYING ADVANTAGES !
IN the preceding chapters it has been assumed that there were
but two commodities in the trade between the countries and
one commodity exported from each. Any given country, how-
ever, exports not one article, but a number. This circumstance
in itself would not necessarily point to modifications of the
reasoning. If the several articles were all produced under the same
conditions of advantage or disadvantage, they could be treated as
one. But itis not to be assumed that all are alike in this regard —
that there is in each and every industry of a given country the same
trend in the effectiveness of its labor compared to effectiveness in
other countries. It is almost certain that a country will have a
greater superiority in some directions than in others. Once more
we are compelled to modify our reasoning and amplify our deduc-
tions by introducing supplementary hypotheses; reshaping the
conclusions reached on the simplest assumptions by introducing
further assumptions such as to bring us closer to the realities.
Suppose that there are not two commodities but three; and
suppose further that we find not the same relations of comparative
effectiveness between the trading countries, but a graded situation.
Let the three commodities be wheat, woolen cloth, and linen. The
following figures will serve for illustration and for analysis.
In the U. S. 10 days’ labor produce 20 wheat
a3 an 22 E81 1048) 2 » 20 cloth
2 wT SY ) ” 20 linen
” Germany 10 ” % ” 10 wheat
” Germany 10 ” 2 ” 15 linen
” Germany 10 ” ? Y 18 cloth
1 For a compact and highly abstract analysis of the main trend of this chapter,
see Appendix H of Marshall's Money, Credit, and Commerce, pp. 322-325. My own
more elementary version had been made before Marshall's book appeared.
Q