materials and machines or other products that are the result of specialized produc tion techniques. No one seriously considers reducing imports of petroleum or uranium when the price of such imports rises by 10% as a result of the depreciation of the French franc. You just have to pay more. And these higher prices further increase the inflationary trend in Great Britain, Italy, and France.
Secondly, if any gains advantage on the world market through lower export costs resulting trom depreciation of its currency, this very quickly brings on protecive and retanatory mee from its leading competitors.
Finally, speculation is associated with capital flight. The balance of payments of OT its trace inflation can very easily bring with it a deficit in the balance of trade (as has beer the case, for example, in the U.S. and Canada. however if the county l quantues and restore the balance pavments. . Thus, large amounts of capital this. The Common Market in fact is only a customs agreement. That is, it is only a first step toward economic integration that in the long run may not survive the sharpening competitiveness in internation al trade. This threat arises from the long term decline in the average rate of growth. Therefore, the champions of Europear capitalist integration advocate a currency union as the next step. This is supposed to be the basis for developing and maintain. ing a common economic and financial policy as well as a common political policy. That is, it is supposed to bring about a real bourgeois state with supernagonal
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a country is not necessarily the reflection balance.
question is seen as a "refuge" because of its greater political and social stability, then foreign capital may flow in in great