Unequal Exchange

Abstract

Most of unequal exchange theorizing is based on Marxian schemes of value formation. Value (w = Wert) is composed of constant (c) and variable (v) capital and of the surplus value (m = Mehrwert)

$$w = c + v + m$$

(17.1)

Constant and variable capital are advanced at the beginning of the production period and are completely used in production. In the process of production, workers add to the used means of production (c) new value (v + m). The surplus value (m) is that part of value added which is not appropriated by the workers but by capitalists and so may serve as a measure of exploitation.