INTERNATIONAL  TRADE  149

former.  In  the  former  they  operate  strongly
between  the  most  widely  distant  parts  ;  but
in  the  latter  they  weaken  or  cease  when  the
boundaries  of  countries  have  to  be  crossed.
A  perfect  example  of  the  circumstances
of  foreign  trade  would  exist  in  the  home
trade  were  it  a  fact  that  between  two
contiguous  parts  of  a  country  trading  with
one  another  there  could  be  no  passage  [  of
labour  and  capital.  Imagine  a  trade  under
such  conditions  between  the  English  counties
of  Lancashire  and  Yorkshire,  and  imagine
that  in  some  peculiar  way,  owing  to  itsclimatic
  or  geographical  conditions,  or  the
nature  of  its  soil,  Lancashire  is  exceptionally ­
  favourable  for  producing  in.  When
trade  opened  between  Lancashire  and  Yorkshire ­
  the  most  paying  industries  in  Lancashire
would  flourish  at  the  expense  of  the  less
paying,  and  the  same  thing  would  happen
in  Yorkshire.  To  that  extent  the  reactions
referred  to  would  be  set  in  motion.  But
when  these  reactions,  working  within  the  two
fields,  had  brought  about  their  fullest  effects,,
it  would  still  be  true  that  earnings  in  Lancashire ­
  would  be  higher  than  earnings  in  Yorkshire, ­
  despite  the  fact  that  earnings,  whether
of  labour  or  capital,  would  be  equalised
throughout  Yorkshire  and  would,  at  the