The name is absent

and c' vanished. That commodity would he on the line between
imports and exports ; and it would in general be partly produced
and partly imported by one and the same country. Mangoldt
illustrates this conception by the following example. Let the
costs of production of the three commodities A, B, C be in the
first country 2, 3, 4 respectively, and in the second country 4,
2, 3 respectively, as shown in the annexed scheme.

ABC

I.         2            3            4

II.   4    2    3'

And let the amounts demanded by each Country before the
opening of the trade be as follows :—

ABC

I.       1,000       800         600

II.        500       750         600

Then by hypothesis (according to the definition of the first
class of cases²) country No. I. lays out a constant cost of
1,000 × 2—2,000 units of her productive force—in procuring
commodity A for her own consumption, 800 on B ; and so on.
Employing this datum, by a tentative process, Mangoldt reaches
the conclusion that A will be produced in No. I. only, B will be
produced in No. II. only, C will be produced both in No. I. and
No. II. Of A there will be produced in No. I. for her own con-
sumption 1,000, for export 1333⅜. Of B there will be produced
in No. II. 750 for her own consumption, 900 for export. Of C
there will be produced in No. I. 533⅛ for her own consumption,
and there will be imported 66∣ ; and in No. II. there will be pro-
duced 600 for her own consumption, and there will be exported
66⅛. The new values are :—

A:B:C::2:2f:4

Here C occupies an intermediate position between exports and
mports, as may be verified by remarking that, after the trade has
been set up, neither country can gain by either exporting or im-
porting C. Eor it costs 4 units of productive force in No. I., and 3
in No√II. ; and the produce of 4 units of No. I. is equivalent on
the international market to the produce of 3 units of No. II., as
appears from the fact that after the trade has been opened, A and

.            ¹ Above p. 630, and cf. p. 609 note.

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