difference in the comparative cost. It may be to our advantage to procure iron from Sweden in exchange for cottons, even although the mines of England as well as her manufactories should be more productive than those of Sweden; for if we have an advantage of one half in cottons, and only an advantage of a quarter in iron, and could sell our cottons to Sweden at the price which Sweden must pay for them if she produced them herself, we should obtain our iron with an advantage [over Sweden] of one half, as well as our cottons. We may often, by trading with foreigners, obtain their commodities at a smaller expense of labor and capital than they cost to the foreigners themselves. The bargain is still advantageous to the foreigner, because the commodity which he receives in exchange, though it has cost us less, would have cost him more.”
This may be illustrated as follows:
| Articles interchanged. | England. | Sweden. |
|---|---|---|
| Cotton. | 10 days' labor produces x yds. | 15 days' labor produces x yds. |
| Iron. | 12 days' labor produces y cwts. | 15 days' labor produces y cwts. |
Here England has the advantage over Sweden in both