Marxism - How rich countries exploit poor countries through disbalanced trade

Author: Best.Korea

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Best.Korea
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Have you ever been to some poor country and thought:

"Things are really cheap here. My dollar buys much more in a poor country than it does in a rich country."

Congratulations! You just discovered basis of economical global exploitation!

So how does it work?

Due to exchange ratio of currencies and as well as prices,

Rich country pays much less when importing from poor country

than poor country does when importing from rich.

This creates an effect where even with equal amount of money or equal amount of things bought,

rich country can buy more and drain more resources from poor country

than poor country can buy and drain from rich country.

Of course, one could say that the rich country offers better quality products. That may sometimes be true, but it isnt true in exchange ratio of currencies.

It also often isnt true in prices either. An apple is cheaper in poor country than in rich country. Now, one cannot put on a serious face and say that apple from rich country is better in quality than apple from poor country. Apples are somewhat same. The price isnt even close to being same.

This is also because poor countries have cheaper labor force.

Poor countries also depend upon rich countries for trade. Only rich countries with high technology can provide good military equipment.

This means that poor countries are forced to enter in trade in which the exchange ratio of products is simply not even close to being equal.

Technologically advanced countries always have trade ratio which is in their favor.

In fact, the trade ratio is so much in rich's favor that poor countries sink even more in poverty as their resources are taken by rich countries on a mass scale.

Remember that Gaddaffi was killed for rejecting US dollar exchange ratio and set his own ratio of exchange.
n8nrgim
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'race to the bottom' happens because poor countries cant compete. there's effectively an unlimited supply of labor if you count all the people in poor countries, and you can pay them beans to do your bidding if there's no rules against it. this causes the most ruthless businesses to have the upper hand in the market, cause their expenses are the lowest, so governments and businesses try to deregulate safety evironmental regs and drive down wages... all to the point where labor is poorly compensated everywhere and where good politcies are repealed or not enacted. 
zedvictor4
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@n8nrgim
@Best.Korea
The problem with the human world is humans.

And we can discuss at length all the bits that are problematic.

And then go on and do all our usual daily stuff,

And then go to sleep,

And then start all over again,

If we survive, that is.

And one day the Sun will engulf the Earth, by which time we may have already moved on to create problems elsewhere.

If we survive, that is.

Or if human assisted intelligence survives.

Though perhaps human assisted intelligence might not view things quite so problematically.

Which is not  to suggest that problem solving is not a means to an end.

Nonetheless what I would suggest, is that a global human society evolved upon this grain of cosmic sand over the past few hundred thousand years or so, exactly as it did.

And it will continue to evolve as it will, relative to problem solving, for as long as is humanly possible.


Thing is:

If everyone was rich would anything get done?