THREE CASES

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)

In the United States the effectiveness of labor in producing
copper is twice as great as is that of labor in producing copper in
Germany; cost is one-half as great. In Germany, on the other
hand, the effectiveness of labor in producing linen is twice as great
as it is in the United States for that article; cost (of linen) again is
one-half as great.
Each country has an absolute advantage over the other in the
production of one of the commodities.

Case II. EquaL DIFFERENCES

RA i. 8

In the U. S. 10 days’ labor produce 30 lbs. copper
re 0.8.10 5" £4 » 15 yds. linen
” Germany 10 7” , " 20 lbs. copper
" Germany 10 x 3 10 yds. linen

Here cost is lower in the United States than in Germany — the
effectiveness of labor is greater — as regards both commodities,
and in equal degree for both. The ten days produce 30 of copper
in the United States, 20 in Germany. The ten days produce 15 of
linen in the United States, 10 of linen in Germany. Labor is more
effective in the United States all around by fifty per cent.

Case III. CoMPARATIVE DIFFERENCES
(a) In the U. 8S. 1" dav-" labor nroduce 30 Ibs. copper
3 NUS ® vds. linen
” German hn. copper
” Germany '~ linen
(b) In the U. 8 © copper
2. U.S. -. linen
” Germany - copper
” (Germany vas. linen

Case ITI has two variants. In variant (a) the American effectiveness
 of labor is greater than the German in copper (30 to 20);
whereas in linen there is no difference (15 in both countries).
Considering the whole situation, the United States is the more
fortunate country; but it is her better fortune in copper that
alone makes the difference.
In variant (b), however, the United States has lower cost and
oreater effectiveness for both commodities, but not to the same