On Wednesday, October 29, 2008 at 17:12:28 (-0400) Carl Dassbach writes:
>Not as I understand the term.  As I understand it, it is the ratio of  
>the value added by labor to the cost of the raw materials. If most of 
>the value of a commodity is due to labor and very little to raw 
>materials, for example, a cpu chip, this is a high value added item.   
>If, on the other hand, most of the value of the commodity is due to the 
>raw materials and little to labor, e,g. corn, this is a low value added 
>product.  Although the actual products have changed over time, cores 
>have historically specialized in high value added products (or 
>processes) and peripheries in low value added products.

Yeah, I think this is what I meant to write: cost, not price.


Bill
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