As neo-colonialism continues to run rampant, some nations continue to grow rich at the expense of others. For two centuries, David Ricardo’s theory of comparative costs has dominated investigation of this problem, and has still provided no answer to the inequality that arises as a result of free trade within a global capitalist system. Emmanuel’s path-breaking study, now itself a classic, upends the conventional assumptions, subjecting the phenomena of international trade to critical scrutiny, both systematically and with logical rigor. It integrates the theory of international value (and unequal exchange) into the general theory of value as propounded by the classical economists and Marx.
Enmanuel’s theory of unequal exchange generated a widespread world debate on its first appearance, part of which, emanating from French economist Charles Bettelheim, is included in this volume. It has remained the foundation of critical analysis of international exchange relations ever since, and has gained even more importance today in the age of global value chains.
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