imported from another and a dearer market.

It is not necessary to apply the principles which we have stated to the
case of bounties on exportation or importation. The application is easy,
and the conclusions present nothing of particular interest or
importance.

6. Any cause which alters the exports or imports from one country into
another, alters the division of the advantage of interchange between
those two countries. Suppose the discovery of a new process, by which
some article of export, or some article not previously exported, can be
produced so cheap as to occasion a great demand for it in other
countries. This of course produces a great influx of money from other
countries, and lowers the prices of all articles imported from them,
until the increase of importation produced by this cause has restored
the equilibrium. Thus, the country which acquires a new article of
export gets its imports cheaper. This is not a case of mere alteration
in the division of the advantage; it is a new advantage created by the
discovery.

But suppose that the invention, to which the nation is indebted for this
increase of the return to its industry, comes into use also in the other
country, and that the process is one which can be as perfectly and as
cheaply performed in the one country as in the other. The new
exportation will cease; trade will revert to its old channels, the money
which flowed in will again flow out, and the country which invented the
process will lose that increase of its gain by trade, which it had
derived from the discovery.

Now the exportation of machinery comes within the case which we have