WAGES AND PRICES IN DIFFERENT COUNTRIES 35 
in one country and thence sent out to others — that all enter into 
foreign trade — it is more generally true that the goods made In 
a given country are sold and used in that country only. The 
conditions of international trade affect not the whole of a country’s 
trade but only a minor part of it. We must distinguish between 
the international and the domestic goods: those, on the one hand, 
which are the objects of import and export trade and are the same 
in price thruout the international field; and those, on’ the other 
hand, which are not imported or exported at all, and do not neces- 
sarily have the same price in one country as in another. What 
can be said of the prices of the domestic commodities? 
The essence of the answer to this question can be indicated by 
a simple illustration. Consider again the figures of the last case 
in the preceding chapter. 
In the U. S. 10 days’ 
pit U.S. 
” Germany - 
" Germany 1U 
9 
Wages 
PER DAY 
» 
TorAL 
N AGES 
-) 
PRODUCE 
® linen 
wheat 
~ linen 
0 wheat 
DomEesTIC 
SuppLy PrICE 
80.75 
30.75 
$0.66% 
$1.00 
Wheat and linen are international commodities, each produced 
solely in the country having the comparative advantage for it. 
Suppose now we have bricks, so bulky in proportion to value that 
cost of transportation is prohibitive. They cannot be shipped from 
country to country, but are produced in each country, and are 
sold in each quite independently. Wages being higher in the 
United States, most persons would say that bricks also must there 
be higher in price. But this is not at all certain to be the case; 
the converse is just as possible. Suppose that 
Wages Toran PRODUCE DoMmesTIC 
PER Day WaGEs SuprLy PricE 
[n the U. S. 10 days’ labor ~~ $1.50 $15 2000 bricks $0.75 per 100 
” Germanv 10 1 $1.00 $10 1000 bricks $1.00 per 100 
We suppose, that is, the effectiveness of American labor in brick- 
making to be high as compared with the effectiveness of German 
labor in that industry. The United States has the same advantage 
over Germany in brick-making as she has in her export industry