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To our parents
Brief Contents
PART 1 Introduction to International PART 5 Exchange Rates
Economics Chapter 10 Introduction to Exchange Rates and
Chapter 1 The Global Economy 1 the Foreign Exchange Market 337
Chapter 11 Exchange Rates I: The Monetary
PART 2 Patterns of International Trade Approach in the Long Run 375
Chapter 2 Trade and Technology: The Ricardian Chapter 12 Exchange Rates II: The Asset
Model 29 Approach in the Short Run 423
Chapter 3 Gains and Losses from Trade in the
Specific-Factors Model 61 PART 6 The Balance of Payments
Chapter 4 Trade and Resources: The Chapter 13 National and International Accounts:
Heckscher-Ohlin Model 89 Income, Wealth, and the Balance of
Payments 469
Chapter 5 Movement of Labor and Capital
between Countries 125 Chapter 14 Output, Exchange Rates, and
Macroeconomic Policies in the
PART 3 New Explanations for International Short Run 511
Trade
PART 7 Applications and Policy Issues
Chapter 6 Increasing Returns to Scale and
Monopolistic Competition 167 Chapter 15 Fixed Versus Floating: International
Monetary Experience 563
PART 4 International Trade Policies Chapter 16 The Euro 605
Chapter 7 Import Tariffs and Quotas Under Index I-1
Perfect Competition 199
Chapter 8 Import Tariffs and Quotas Under
Imperfect Competition 245
Chapter 9 International Agreements: Trade,
Labor, and the Environment 293

vii �
Contents

Preface xxii

PART 1 CHAPTER 1 The Global Economy 1


Introduction to
1 International Trade 2
International
The Basics of World Trade 4
Economics
HEADLINES Sum of iPhone Parts: Trade Distortion 5
Map of World Trade 6
Trade Compared with GDP 8
Barriers to Trade 9
APPLICATION Tariffs in the Interwar Period 9

2 Migration and Foreign Direct Investment 10


Map of Migration 10
Map of Foreign Direct Investment 12

3 International Macroeconomics 14
Foreign Exchange: Currencies and Crises 14
HEADLINES Economic Crisis in Iceland 16
Globalization of Finance: Debts and Deficits 17
Government and Institutions: Policies and Performance 20

4 Conclusions 23

PART 2 CHAPTER 2 Trade and Technology: The Ricardian Model 29


Patterns of
International Trade 1 Reasons for Trade 31
Proximity 31
Resources 32
Absolute Advantage 32
SIDE BAR Can Comparative Advantage Be Created? The Case
of “Icewine” 33
Comparative Advantage 34
SIDE BAR David Ricardo and Mercantilism 34

2 Ricardian Model 35
The Home Country 35
The Foreign Country 39

� viii
CONTENTS ix

APPLICATION Comparative Advantage in Apparel, Textiles, and


Wheat 40

3 Determining the Pattern of International Trade 42


International Trade Equilibrium 43
APPLICATION Labor Productivity and Wages 48

4 Solving for International Prices 49


Home Export Supply Curve 49
International Trade Equilibrium 53
APPLICATION The Terms of Trade for Primary Commodities 54

5 Conclusions 55
Key Points, Key Terms, and Problems

CHAPTER 3 Gains and Losses from Trade in the Specific-Factors


Model 61
1 Specific-Factors Model 63
The Home Country 63
The Foreign Country 66
Overall Gains from Trade 66
APPLICATION How Large Are the Gains from Trade? 67

2 Earnings of Labor 68
Determination of Wages 68
Change in Relative Price of Manufactures 70
APPLICATION Manufacturing and Services in the United States:
Employment and Wages across Sectors 73
APPLICATION Trade Adjustment Assistance Programs: Financing the
Adjustment Costs of Trade 75

3 Earnings of Capital and Land 76


Determining the Payments to Capital and Land 76
HEADLINES Services Workers Are Now Eligible for Trade
Adjustment Assistance 77
Numerical Example 79
What It All Means 82
APPLICATION Prices in Agriculture 82

4 Conclusions 84
HEADLINES Rise in Coffee Prices—Great for Farmers,
Tough on Co-ops 85
Key Points, Key Terms, and Problems
x CONTENTS

CHAPTER 4 Trade and Resources: The Heckscher-Ohlin


Model 89
1 Heckscher-Ohlin Model 90
Assumptions of the Heckscher-Ohlin Model 91
APPLICATION Are Factor Intensities the Same Across Countries? 93
No-Trade Equilibrium 94
Free-Trade Equilibrium 96

2 Testing the Heckscher-Ohlin Model 100


Leontief’s Paradox 101
Factor Endowments in 2010 102
Differing Productivities across Countries 104
HEADLINES China Drawing High-Tech Research from
U.S. 107
Leontief’s Paradox Once Again 109

3 Effects of Trade on Factor Prices 112


Effect of Trade on the Wage and Rental of Home 112
Determination of the Real Wage and Real Rental 115
Changes in the Real Wage and Rental: A Numerical Example 117
APPLICATION Opinions toward Free Trade 119

4 Conclusions 121
Key Points, Key Terms, and Problems

CHAPTER 5 Movement of Labor and Capital Between


Countries 125
1 Movement of Labor between Countries: Migration 127
Effects of Immigration in the Short Run: Specific-Factors
Model 127
APPLICATION Immigration to the New World 130
APPLICATION Immigration to the United States and Europe
Today 131
HEADLINES Call for Return of Border Controls in Europe 132
HEADLINES The Economic Windfall of Immigration
Reform 133
Other Effects of Immigration in the Short Run 135
Effects of Immigration in the Long Run 136
Rybczynski Theorem 141
Factor Price Insensitivity Theorem 142
APPLICATION The Effects of the Mariel Boat Lift on Industry
Output in Miami 142
APPLICATION Immigration and U.S. Wages, 1990–2006 144
CONTENTS xi

2 Movement of Capital between Countries: Foreign Direct


Investment 146
Greenfield Investment 147
FDI in the Short Run: Specific-Factors Model 147
FDI in the Long Run 149
APPLICATION The Effect of FDI on Rentals and Wages in
Singapore 151

3 Gains from Labor and Capital Flows 153


HEADLINES The Myth of Asia’s Miracle 153
Gains from Immigration 154
SIDE BAR Immigrants and Their Remittances 157
APPLICATION Gains from Migration 158
Gains from Foreign Direct Investment 161

4 Conclusions 162
Key Points, Key Terms, and Problems

CHAPTER 6 Increasing Returns to Scale and Monopolistic PART 3 


Competition 167 New Explanations
for International
1 Basics of Imperfect Competition 170
Trade
Monopoly Equilibrium 170
Demand with Duopoly 171

2 Trade Under Monopolistic Competition 172


Equilibrium without Trade 174
Equilibrium with Free Trade 176

3 The North American Free Trade Agreement 180


Gains and Adjustment Costs for Canada Under NAFTA 180
HEADLINES The Long and the Short of the Canada-U.S. Free
Trade Agreement 181
Gains and Adjustment Costs for Mexico Under NAFTA 181
HEADLINES NAFTA Turns 15, Bravo! 182
HEADLINES Nearly 20 Years After NAFTA, First Mexican Truck
Arrives In U.S. Interior 183
Gains and Adjustment Costs for the United States Under NAFTA 186

4 Intra-Industry Trade and the Gravity Equation 189


Index of Intra-Industry Trade 190
The Gravity Equation 191
APPLICATION The Gravity Equation for Canada and the United
States 192

5 Conclusions 195
Key Points, Key Terms, and Problems
xii CONTENTS

­­­­PART 4 CHAPTER 7 Import Tariffs and Quotas Under Perfect


International Trade Competition 199
Policies
1 A Brief History of the World Trade Organization 201

2 The Gains from Trade 202


Consumer and Producer Surplus 202
SIDE BAR Key Provisions of the GATT 203
Home Welfare 205
Home Import Demand Curve 207

3 Import Tariffs for a Small Country 208


Free Trade for a Small Country 208
Effect of the Tariff 208
Why and How Are Tariffs Applied? 212
SIDE BAR Safeguard Tariffs 213
APPLICATION U.S. Tariffs on Steel and Tires 214

4 Import Tariffs for a Large Country 222


Foreign Export Supply 222
Effect of the Tariff 223
APPLICATION U.S. Tariffs on Steel Once Again 227

5 Import Quotas 229


Import Quota in a Small Country 229
HEADLINES Banana Wars 231
HEADLINES Sugar Could Sweeten U.S. Australia Trans-Pacific
Trade Talks 232
APPLICATION China and the Multifibre Arrangement 235

6 Conclusions 238
Key Points, Key Terms, and Problems

CHAPTER 8 Import Tariffs and Quotas Under Imperfect


Competition 245
1 Tariffs and Quotas with Home Monopoly 247
No-Trade Equilibrium 248
Free-Trade Equilibrium 249
Effect of a Home Tariff 250
Effect of a Home Quota 252
APPLICATION U.S. Imports of Japanese Automobiles 254
CONTENTS xiii

2 Tariffs with Foreign Monopoly 257


Foreign Monopoly 257
APPLICATION Import Tariffs on Japanese Trucks 259
HEADLINES The Chickens Have Come Home to Roost 261

3 Dumping 262
Numerical Example of Dumping 264

4 Policy Response to Dumping 264


Antidumping Duties 265
APPLICATION United States Imports of Solar Panels from
China 265
APPLICATION Antidumping Duties Versus Safeguard Tariffs 268

5 Infant Industry Protection 270


Free-Trade Equilibrium 272
Tariff Equilibrium 272
APPLICATION Examples of Infant Industry Protection 274
Government Policies in the Solar Panel Industry 274
U.S. Tariff on Heavyweight Motorcycles 276
HEADLINES Solar Flares 276
Computers in Brazil 280
Protecting the Automobile Industry in China 282
HEADLINES Milestone for China Car Output 282
HEADLINES Shanghai Tie-Up Drives Profits for GM 284

6 Conclusions 286
Key Points, Key Terms, and Problems

CHAPTER 9 I nternational Agreements: Trade, Labor,


and the Environment 293
1 International Trade Agreements 296
The Logic of Multilateral Trade Agreements 296
Regional Trade Agreements 299
Trade Creation and Trade Diversion 301
Numerical Example of Trade Creation and Diversion 301
HEADLINES China-ASEAN Treaty Threatens Indian
Exporters 302
Trade Diversion in a Graph 303
APPLICATION Trade Creation and Diversion for Canada 306
xiv CONTENTS

2 International Agreements on Labor Issues 306


Labor Side Agreement Under NAFTA 307
Other Labor Agreements 308
HEADLINES Wal-Mart Orders Chinese Suppliers to Lift
Standards 310
HEADLINES American Tariffs, Bangladeshi Deaths 312
HEADLINES U.S. Suspends Bangladesh’s Preferential Trade
Status 313

3 International Agreements on the Environment 314


Environmental Issues in the GATT and WTO 314
Does Trade Help or Harm the Environment? 317
Examples of the Environmental Impact of Trade 320
The Tragedy of the Commons 322
International Agreements on Pollution 326
APPLICATION The Kyoto Protocol and the Copenhagen Accord 328

4 Conclusions 330
HEADLINES Dismal Outcome at Copenhagen Fiasco 361
Key Points, Key Terms, and Problems

PART 5 CHAPTER 10 Introduction to Exchange Rates and the Foreign


Exchange Rates Exchange Market 337
1 Exchange Rate Essentials 338
Defining the Exchange Rate 338
Appreciations and Depreciations 340
Multilateral Exchange Rates 342
Example: Using Exchange Rates to Compare Prices in a Common
Currency 343

2 Exchange Rates in Practice 345


Exchange Rate Regimes: Fixed Versus Floating 345
APPLICATION Recent Exchange Rate Experiences 346

3 The Market for Foreign Exchange 351


The Spot Contract 351
Transaction Costs 352
Derivatives 352
APPLICATION Foreign Exchange Derivatives 353
Private Actors 354
Government Actions 354
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CONTENTS xv

4 Arbitrage and Spot Exchange Rates 355


Arbitrage with Two Currencies 356
Arbitrage with Three Currencies 357
Cross Rates and Vehicle Currencies 358

5 Arbitrage and Interest Rates 359


Riskless Arbitrage: Covered Interest Parity 359
APPLICATION Evidence on Covered Interest Parity 361
Risky Arbitrage: Uncovered Interest Parity 362
SIDE BAR Assets and Their Attributes 363
APPLICATION Evidence on Uncovered Interest Parity 365
Uncovered Interest Parity: A Useful Approximation 366
Summary 368

6 Conclusions 368
Key Points, Key Terms, and Problems

CHAPTER 11 Exchange Rates I: The Monetary Approach in


the Long Run 375
1 Exchange Rates and Prices in the Long Run: Purchasing Power
Parity and Goods Market Equilibrium 376
The Law of One Price 377
Purchasing Power Parity 378
The Real Exchange Rate 379
Absolute PPP and the Real Exchange Rate 379
Absolute PPP, Prices, and the Nominal Exchange Rate 380
Relative PPP, Inflation, and Exchange Rate Depreciation 380
Summary 382
APPLICATION Evidence for PPP in the Long Run and
Short Run 382
How Slow Is Convergence to PPP? 383
What Explains Deviations from PPP? 384
SIDE BAR Forecasting When the Real Exchange Rate Is
Undervalued or Overvalued 385
HEADLINES The Big Mac Index 386

2 Money, Prices, and Exchange Rates in the Long Run: Money


Market Equilibrium in a Simple Model 388
What Is Money? 388
The Measurement of Money 388
The Supply of Money 389
xvi CONTENTS

The Demand for Money: A Simple Model 390


Equilibrium in the Money Market 391
A Simple Monetary Model of Prices 391
A Simple Monetary Model of the Exchange Rate 392
Money Growth, Inflation, and Depreciation 393

3 The Monetary Approach: Implications and Evidence 394


Exchange Rate Forecasts Using the Simple Model 394
APPLICATION Evidence for the Monetary Approach 397
APPLICATION Hyperinflations 398
SIDE BAR Currency Reform 399

4 Money, Interest Rates, and Prices in the Long Run:


A General Model 401
HEADLINES The First Hyperinflation of the Twenty-First
Century 402
The Demand for Money: The General Model 402
Long-Run Equilibrium in the Money Market 403
Inflation and Interest Rates in the Long Run 404
The Fisher Effect 405
Real Interest Parity 406
APPLICATION Evidence on the Fisher Effect 407
The Fundamental Equation Under the General Model 408
Exchange Rate Forecasts Using the General Model 409

5 Monetary Regimes and Exchange Rate Regimes 411


The Long Run: The Nominal Anchor 412
APPLICATION Nominal Anchors in Theory and Practice 414

6 Conclusions 416
Key Points, Key Terms, and Problems

CHAPTER 12 Exchange Rates II: The Asset Approach in the


Short Run 423
1 Exchange Rates and Interest Rates in the Short Run:
UIP and FX Market Equilibrium 424
Risky Arbitrage 424
Equilibrium in the FX Market: An Example 426
Adjustment to Forex Market Equilibrium 427
Changes in Domestic and Foreign Returns and FX Market Equilibrium 428
Summary 430

2 Interest Rates in the Short Run: Money Market Equilibrium 430


Money Market Equilibrium in the Short Run: How Nominal Interest Rates
Are Determined 430
CONTENTS xvii

Money Market Equilibrium in the Short Run: Graphical Solution 432


Adjustment to Money Market Equilibrium in the Short Run 432
Another Building Block: Short-Run Money Market Equilibrium 433
Changes in Money Supply and the Nominal Interest Rate 433
APPLICATION Can Central Banks Always Control the Interest Rate?
A Lesson from the Crisis of 2008–2009 435
Changes in Real Income and the Nominal Interest Rate 436
The Monetary Model: The Short Run Versus the Long Run 436

3 The Asset Approach: Applications and Evidence 437


The Asset Approach to Exchange Rates: Graphical Solution 437
Short-Run Policy Analysis 439
APPLICATION The Rise and Fall of the Dollar, 1999–2004 442

4 A Complete Theory: Unifying the Monetary and


Asset Approaches 443
Long-Run Policy Analysis 445
SIDE BAR Confessions of a Foreign Exchange Trader 446
Overshooting 450
SIDE BAR Overshooting in Practice 452

5 Fixed Exchange Rates and the Trilemma 453


What Is a Fixed Exchange Rate Regime? 453
Pegging Sacrifices Monetary Policy Autonomy in the Short Run:
Example 453
Pegging Sacrifices Monetary Policy Autonomy in the Long Run:
Example 455
The Trilemma 456
SIDE BAR Intermediate Regimes 458
APPLICATION The Trilemma in Europe 459

6 Conclusions 460
APPLICATION News and the Foreign Exchange Market in
Wartime 460
Key Points, Key Terms, and Problems

CHAPTER 13 National and International Accounts: Income, PART 6


Wealth, and the Balance of Payments 469 The Balance of
Payments
1 Measuring Macroeconomic Activity: An Overview 470
The Flow of Payments in a Closed Economy: Introducing the National
Income and Product Accounts 470
The Flow of Payments in an Open Economy: Incorporating the Balance of
Payments Accounts 472
xviii CONTENTS

2 Income, Product, and Expenditure 475


Three Approaches to Measuring Economic Activity 475
From GNE to GDP: Accounting for Trade in Goods and Services 475
From GDP to GNI: Accounting for Trade in Factor Services 476
APPLICATION Celtic Tiger or Tortoise? 477
From GNI to GNDI: Accounting for Transfers of Income 479
What the National Economic Aggregates Tell Us 480
HEADLINES Are Rich Countries “Stingy” with Foreign
Aid? 481
Understanding the Data for the National Economic Aggregates 482
What the Current Account Tells Us 484
APPLICATION Global Imbalances 485

3 The Balance of Payments 490


Accounting for Asset Transactions: The Financial Account 490
Accounting for Asset Transactions: The Capital Account 490
Accounting for Home and Foreign Assets 491
How the Balance of Payments Accounts Work: A Macroeconomic
View 492
How the Balance of Payments Accounts Work: A Microeconomic
View 493
SIDE BAR The Double-Entry Principle in the Balance of
Payments 494
Understanding the Data for the Balance of Payments Account 495
What the Balance of Payments Account Tells Us 497

4 External Wealth 498


The Level of External Wealth 499
Changes in External Wealth 499
Understanding the Data on External Wealth 501
What External Wealth Tells Us 503

5 Conclusions 503
SIDE BAR Beware of Greeks Bearing Statistics 503
Key Points, Key Terms, and Problems

Appendix to Chapter 13 509

CHAPTER 14 Output, Exchange Rates, and Macroeconomic


Policies in the Short Run 511
1 Demand in the Open Economy 512
Preliminaries and Assumptions 512
Consumption 513
Investment 514
CONTENTS xix

The Government 514


The Trade Balance 515
HEADLINES Oh! What a Lovely Currency War 517
HEADLINES The Curry Trade 518
APPLICATION The Trade Balance and the Real Exchange Rate 519
SIDE BAR Barriers to Expenditure Switching: Pass-Through and
the J Curve 521
Exogenous Changes in Demand 523

2 Goods Market Equilibrium: The Keynesian Cross 524


Supply and Demand 524
Determinants of Demand 525
Factors That Shift the Demand Curve 525
Summary 527

3 Goods and Forex Market Equilibria: Deriving the IS Curve 528


Equilibrium in Two Markets 528
Forex Market Recap 528
Deriving the IS Curve 530
Factors That Shift the IS Curve 531
Summing Up the IS Curve 533

4 Money Market Equilibrium: Deriving the LM Curve 534


Money Market Recap 534
Deriving the LM Curve 534
Factors That Shift the LM Curve 535
Summing Up the LM Curve 536

5 The Short-Run IS-LM-FX Model of an Open Economy 537


Macroeconomic Policies in the Short Run 537
Monetary Policy Under Floating Exchange Rates 539
Monetary Policy Under Fixed Exchange Rates 540
Fiscal Policy Under Floating Exchange Rates 541
Fiscal Policy Under Fixed Exchange Rates 542
Summary 544

6 Stabilization Policy 545


APPLICATION The Right Time for Austerity? 545
Problems in Policy Design and Implementation 547
APPLICATION Poland Is Not Latvia 548
APPLICATION Macroeconomic Policies in the Liquidity Trap 550

7 Conclusions 554
Key Points, Key Terms, and Problems
Discovering Diverse Content Through
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The Project Gutenberg eBook of The Customs
Lounge
This ebook is for the use of anyone anywhere in the United States
and most other parts of the world at no cost and with almost no
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Title: The Customs Lounge

Author: Annie Proulx

Release date: February 16, 2020 [eBook #61424]


Most recently updated: October 17, 2024

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Credits: Produced by Greg Weeks, Mary Meehan and the Online


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*** START OF THE PROJECT GUTENBERG EBOOK THE CUSTOMS


LOUNGE ***
THE CUSTOMS LOUNGE
BY E. A. PROULX

Anything can happen in the


customs lounge—since they
let those Earth people in!

[Transcriber's Note: This etext was produced from


Worlds of If Science Fiction, September 1963.
Extensive research did not uncover any evidence that
the U.S. copyright on this publication was renewed.]
There were usually a few Customs Inspectors in the lounge, waiting
to begin their shifts, hanging around trading news and incidents and
drinking the bad, lukewarm kasser that was a standing joke in the
Immigration-Customs Service.
Old Grag was telling for perhaps the eightieth time of a success of
his when he was young in the Service.
"... They had this small box of sticky, squashy sweets with them. The
young one was eating one. Many another Inspector would have
passed them through, but I thought the young one chewed too
much and too loud. So I said, 'Mind if I have one?'
"'Wah!' says they together, 'it would set you on edge, Noble Wise
Inspector. It is the taste of another world.' They was Venusers, and
they started shifting and hopping around, and humming their
national anthem, you know how they used to do back in the old
days. I made quite a nice little find. Almost a half-scree of chamfer
in each one of those sweets. I got a promotion out of that, and the
Venusers got a six-year close out."
Inspector Flimp blew one of his noses loudly.
"Hee, that's nothing. I recall back when we first opened up for
Immigration, and a whole shipload of earthers came in. They were
crammed in like tigs in a nest, and as usual they didn't know one
word of the language, they didn't have any idea of where to go or
how to do anything, and they'd got separated from their controller.
They just stood around, huddled together and jabbering at each
other. Well, I checked out about twenty of them, and then there
comes up this big ugly female. Well, I jacks the elevator up some
more, and I looks down at her.
"'Name!', I call. 'Gladdis Cracklegill,' or some other weird earth name
she screams at me. 'Too much name,' I say. 'You've got enough
name there for five of you. Which will you choose, Glad, Is, Crack, El
or Gil?'
"Well, it took me a while to make her understand me—my earth
accent wasn't too good then, and she was slow-headed, having only
one, like all earthers. But I finally made her understand what I
wanted to know, and then, by Clag, what a ramping frowst she did
make!
"It was while she was screeching at me that I noticed her teeth were
pretty big, even for such a huge beast as she was. So I secretly
turned on the Dento-Spyer, right into her jaws, and what a sight on
the view screen! Each of those big teeth was false and filled to the
top with Earth seeds she was trying to smuggle!"
"Earthers!" exploded young Nask. "They make me sick!"
"I'm with you, Nask," said Inspector Sprim. "And I don't understand
why they still keep routing earthers through Immigration anyway.
They claim they're a borderline case, but when you've seen as many
as I have, you know, which side of the border they're on."

Nask went off to the kasser dispenser and his place was taken by
Brif, the head Inspector, who had been listening.
"Un-edge yourself, Sprim," smiled Brif, contracting one of his heads.
"I have good news, rare news and fine news. The Four Council
decision just came down to us. Earthers are now to be routed
through Livestock instead of Immigration beginning very soon."
A cheer went up from the little group of Customs and Immigration
officials. The one Livestock Inspector in the lounge groaned in
despair.
Old Inspector Flimp seemed bothered.
"They've made themselves a mistake," he sputtered. "Earthers can
be clever and tricky even after they're altered. Why, I seen them pull
every trick in the book coming through here. Did I ever tell you
about the stunted one with an artificial head who tried to pass
himself off as a rest-park planner? Well, it seems that...."
Two young, but large inspectors sneaked away from the group when
they saw old Flimp was launched into one of his dull yarns again.
Outside the lounge, after a quick look up and down the hall, they
ducked into the robot-cleaner storage closet.
"Boy," gasped the shorter inspector. "I had to get out of there.
Besides the torture of listening to that two-headed monster babble
on and on about how he outwitted earthers when he was still able to
move around, this miserable thing has started to come loose again."
He gave an impatient wrench to his left head, and it wobbled
enough to expose some of the delicate wires that the earth robotic
engineer had labored over so many hours.
The other began tightening straps and buckles for him.
"There," he said finally. "You look like one of the boys again."
Laughing together, the earthers went back into the Customs Lounge.
*** END OF THE PROJECT GUTENBERG EBOOK THE CUSTOMS
LOUNGE ***

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