The Theory of International Values

The problem of reciprocal demand, 582.-Advantage of variety of exports, 586.-Gains of large and small countries, 589.-Influence of demand for foreign products, 595.-Elasticity of demand, 600; of supply, 607.-The case of India, 610.-Long-run and short-run factors, 612.-Conclusion, 616.In an article published in this Journal nearly a decade ago' I attempted, with respect to the determination of international values, to develop certain principles which deviated rather widely from generally accepted doctrine.The article received a generous appreciation in Professor J. W. Angell's invaluable Theory of International Prices. 2 To Professor Angell, however, my argument seemed to turn primarily on the question of relative benefits from foreign trade.In this opinion I cannot concur.The very heart of the article was, in fact, a demonstration that the terms of international exchange are established not in the way posited by the neoclassical school but through the play of indirect, or "linked," competition,' on the basis of opportunity cost.It was at that time my impression

Economics · Mathematical economics · Global Peace and Security Dynamics · International Relations and Foreign Policy