Outlines of Economics Developed in a Series of Problems
Outlines of Economics Developed in a Series of Problems
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If we are considering the price to us of some articles made in U. S. A. , we must take into account the rate of exchange. If, in spite of the rate of exchange, they are cheaper than they would be in our own country, imports from U. S. A. Will increase until the demand for means of remittance causes the price of drafts to rise, and imports are checked.
We instance two countries only for the sake of simplicity, but, of course, an excess Rates of Exchange 79 of exports to one country may be balanc...ed by an excess of imports from another.
International finance has made of the world a single exchange market. No con- sideration of economy will prevent a country from competing with another in its own markets. On the other hand, it does not follow that the price of its goods abroad is the price ruling at home. Combines may prefer to dump abroad at less than cost rather than spoil the home market, or lose the export market. Again, it is quite possible to have two widely different prices ruling, a low price at home and a high price abroad: we will endeavour to make this clear in a later chapter.
What to read after Outlines of Economics Developed in a Series of Problems?
You can find similar books in the "Read Also" column, or choose other free books by University of Chicago Dept of Political Economy to read onlineMoreLess
To quickly assess the difficulty of the text, read a short excerpt:
If we are considering the price to us of some articles made in U. S. A. , we must take into account the rate of exchange. If, in spite of the rate of exchange, they are cheaper than they would be in our own country, imports from U. S. A. Will increase until the demand for means of remittance causes the price of drafts to rise, and imports are checked.
We instance two countries only for the sake of simplicity, but, of course, an excess Rates of Exchange 79 of exports to one country may be balanc...ed by an excess of imports from another.
International finance has made of the world a single exchange market. No con- sideration of economy will prevent a country from competing with another in its own markets. On the other hand, it does not follow that the price of its goods abroad is the price ruling at home. Combines may prefer to dump abroad at less than cost rather than spoil the home market, or lose the export market. Again, it is quite possible to have two widely different prices ruling, a low price at home and a high price abroad: we will endeavour to make this clear in a later chapter.
What to read after Outlines of Economics Developed in a Series of Problems?
You can find similar books in the "Read Also" column, or choose other free books by University of Chicago Dept of Political Economy to read onlineMoreLess
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