Publisher Summary This chapter focuses on the unit values of U.S. machinery exports. The negative relationship between unit value and quantity exported is not discrimination but something quite different. Most buyers want the ordinary variety; only a few want the super version. Thus, a country purchasing a large number of cars from Germany would be more likely to import Volkswagens than Mercedes-Benz. And any country importing 100 airplanes is more likely to be buying business jets than 747s. If this line of reasoning is extended to seven-digit product categories, it follows that any country with large imports will be buying mostly standard products, while some of those countries with small imports will be purchasing mainly the special items. This phenomenon alone could give a negative regression coefficient between unit value and quantity. The quantity effect has policy importance only to the extent that it reflects discrimination. If discrimination is present, the small importing country pays more for its machinery. The quality effect, as measured by per capita income in the importing country, is not as strong as the quantity effect. The coefficient of variation of GDP per capita for the sample countries is 1.07. A country enjoying per capita income one standard deviation greater than the mean would, thus, pay about 9% more per unit of machinery. Thus, a large part of the unexplained unit value variance is probably not connected with country attributes but instead reflects the inherent diversity of goods within a seven-digit classification.