Kil
CONTENTS
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PAGES
terms of trade, 27. Changes in the barter terms of trade reflected
in changes of commodity incomes, 28. In what sense it can be
said that the barter terms become more or less favorable, 29.
Effect of elasticity of demand for foreign commodities on the
barter terms of trade, 31. Elasticity of demand for domestic
goods a modifying factor, 32.
CHAPTER 5
Waces AND Prices IN DIFFERENT COUNTRIES.
AND INTERNATIONAL PRICES . .
Distinction between international goods and domestic goods.
34. High money wages do not necessarily cause high prices,
35. What determines the range of money wages, of real wages,
36. High money wages not necessarily correlative with pros-
perity. A common fallacy : that there is a tendency to inter-
national equalization of money wages, 38. Relations of money
wages and domestic prices, 40. Movements of domestic prices,
as distinct from international prices, best revealed by movements
of money incomes, 41.
CHAPTER 6
Wages Nor UNIFORM. NON-COMPETING GROUPS .
Prices of commodities within a country are not in accord with
the quantities of labor necessary for their production, 43. How
a lower wages cost can convert a comparative disadvantage in
terms of labor cost into a comparative advantage. Persistence
of differences in wages cost is possible because of the existence of
non-competing groups of laborers, 44. International trade not
affected by this factor unless there be differences between coun-
tries as regards the hierarchy of non-competing groups, 47.
The relative positions of non-competing groups and the forces
determining the numbers in each group, 52. Relation of recip-
rocal international demand and reciprocal domestic demand, 54.
Illustrations of the influence of non-competing groups on inter-
national trade furnished by the chemical industries of Germany
in latter part of 19th century, 57; by the industries using much
unskilled labor in the United States during the same period, 58.
CHAPTER 7
CAPITAL AND INTEREST . :
Cost of raw materials may be resolved into wages and interest,
and hence is not an independent factor, 61. Interest charges,
34-42
43-60
61-75
