32 
INTERNATIONAL TRADE 
the same industrial stratification thruout, the fact of stratification 
is of no consequence; the several layers are related to each other 
as if they were a pair of homogeneous structures 
Such figures could be easily varied further, and the same prin- 
ciples further illustrated. We may suppose the relation between 
the rates of pay in different groups not to be the same in the two 
countries. That is, suppose non competing groups in each coun- 
try, but with differences between the groups not the same in both. 
If the lower paid laborers in the United States (the unskilled, say) 
receive not only lower wages than those belonging to the higher 
groups, but wages farther down in the United States scale than is 
the case with corresponding sorts of laborers in Germany, then 
the commodities for whose production they are combined with the 
others will be affected in price exactly as if that sort of labor were 
especially effective in the United States. These commodities 
will be relatively cheap and will tend to be exported. Again, if it 
happens not only that a given group of laborers gets an unusual 
rate of pay, but also that a large proportion of this sort of labor is 
needed for producing a given commodity, the result will be ac- 
centuated. Assume, for example, that skilled workers of a given 
kind are to be had in Germany at a premium or differential over 
other workers which is not so high as the premium for the same 
skilled workers in the United States; assume further that the 
technical processes of an industry require a proportion of such 
workers larger than is needed in other industries; then the prod- 
ucts of that industry will be particularly low in price in Germany, 
even tho not made with labor having any particular (comparative) 
effectiveness. They will tend to be exported; they may be 
exported even tho the labor lack something in comparative effect- 
1veness. 
There is more to be said, however. What causes the differences 
of wages within a country? What determines the relative positions 
of the non-competing groups? The underlying forces may be 
solely of domestic origin and effect; then they are to be conceived 
as operating on international trade as separate and independent