Unequal Exchange and Exploitation.

Marx insists that the richer country exploits the poorer one through an unequal exchange of labour quantities. Elsewhere I have confirmed that the unequal exchange of labour quantities is possible, but I failed to consider carefully whether this implies an unequal exchange of values, i.e. international exploitation. This paper argues that Marx is wrong to insist on it, in that he does not consider properly the comparison of values differently dated, and points out that a similar failure can be found in the theory of Bauer and Grossmann. Finally, I state my own theory, which is free from the difficulties found in Marxian theories. JEL Classification Numbers: B1, F0. [ABSTRACT FROM AUTHOR]