Unequal Exchange and the Redeployment of Industries

The existence of Unequal Exchange leads by necessity to the problem of a global restructuring of production facilities, or what is nowadays often called redeployment in international fora. If the same good can be produced at lower costs in the periphery although it may be sold in the centre at the same price as a unit produced there at higher costs, industries simply have to retreat under competitive market assumptions. Even if the price of PC imports is cheaper (as in the case of textiles or apparel) yet allowing very much higher profits to those who produce outside the consuming region, the same effect must be triggered.