From: gerald_a_levy (gerald_a_levy@msn.com)
Date: Fri Jan 24 2003 - 08:24:29 EST
Re Rakesh's [8380]: > One interesting aspect here is the intl division of labor. As James > Galbraith points out, the advanced countries tend to export > knowledge intensive capital goods such as aeroplanes, medical > equipment, speciality chips, software and import non R&D > intensive goods such as clothes, toys, shoes, non speciality steel. There is a lot of truth to this as a 'stylized fact'. Yet, as with other stylized facts, when you get into the specifics of particular branches of production then the picture becomes more complex. For instance, a significant percentage of software is not produced in advanced capitalist economies (on the Indian software production industry and 'intellectual property rights', see http://www.apnic.net/mailing-lists/s-asia-it/archive/1999/10/msg00016.html ) and there is also a significant percentage of 'non-knowledge' intensive goods being exported by advanced capitalist nations (e.g. the US is a major exporter of grain). The story on the Indian production of software is also interesting because it connects well with this thread. Of course, another 'hi-tech' product (the chip) has long been produced in less developed economies since the skill required in assembly-line production is minimal (dexterity, endurance and eyesight are the most valued 'skills') and labour-power can be obtained at much lower wage and benefit rates. Is there any reason why 'specialty chips' will continue to be produced primarily in advanced capitalist nations? Solidarity, Jerry
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