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The Core of the Apple: Degrees of Monopoly and Dark Value in Global Commodity Chains

Journal of World-Systems Research

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Title The Core of the Apple: Degrees of Monopoly and Dark Value in Global Commodity Chains
 
Creator Clelland, Donald A.
 
Subject
Apple; Chinese labor; consumer surplus; dark value; monopsony; unequal exchange; value capture
 
Description The capitalist world-economy takes the form of an iceberg. The most studied part which appears above the surface is supported by a huge underlying structure that is out of sight. Unlike the iceberg, the world-economy is a dynamic system based on flows of value from the underside toward the top. These include drains of surplus (expropriated value) that take two forms: visible monetarized flows of bright value and hidden un(der)costed flows that carry dark value (the unrecorded value of cheap labor, labor reproduction and ecological externalities). Commodity chains are central mechanisms for these surplus drains in the world-economy. At each node of the chain, participants attempt to maximize their capture of bright value through wages, rent and profit. They do this by constructing differential degrees of monopoly (control of the markup between cost and sale price) and degrees of monopsony (control of markdowns of production costs). However, this process depends upon the transformation of dark value into bright value for capture. Via an examination of the Apple iPad commodity chain, I show how the bright value captured by Apple depends on the dark value extracted by its suppliers. Dark value is estimated by measurements of the value of under-payments for wage labor, reproductive labor and environmental damage in Asian countries, especially China. Surprisingly, most dark value embedded in the iPad is captured by final buyers (mostly in the core) as consumer surplus.
 
Publisher University Library System, University of Pittsburgh
 
Contributor
 
Date 2014-03-01
 
Type info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion

 
Format application/pdf
 
Identifier http://jwsr.pitt.edu/ojs/index.php/jwsr/article/view/564
10.5195/jwsr.2014.564
 
Source Journal of World-Systems Research; Volume 20, Number 1, Winter/Spring 2014; 82-111
1076-156X
 
Language eng
 
Relation http://jwsr.pitt.edu/ojs/index.php/jwsr/article/view/564/656
 
Rights Copyright (c) 2015 Donald Clelland
http://creativecommons.org/licenses/by/4.0