In corporate consulting-speak "adding value" means finding some compelling way to charge a client higher fees. I would tend to think of it as rent for being more nimble than the client.
On Wed, Oct 29, 2008 at 11:30 AM, Sean Andrews <[EMAIL PROTECTED]> wrote: > I'm trying to work out a few aspects of the phrase (and concept) "high > value added labor" as it is use in mainstream, particularly > international or transnational economics. In its use, it appears to > be speaking about value in almost Marxist terms, but its meaning seems > to be the opposite. It seems to take the market price as the index > and claim that the additional value is evident by the product being > able to sell by a larger percentage than it was before--this spread > being relatively larger than that of "low value added labor." Since > the latter is usually done--particularly in average commodities like > clothing or consumer electronics--in low wage countries and the > former--high value added being stuff like marketing, product design, > advertising, legal actions to protect trademarks (though this may not > be included) etc.--in high wage countries, in practice, what it seems > to actually indicate is that the relative factor cost is more. > > But this doesn't really explain it either, because, for instance, many > branded goods are already trading on a name built up long before they > hit the market; the marketing bill surely can't account for the > 20-100% and beyond markup on each individual commodity; and it seems > like the manufacturers (or the branded contractors and their retail > partners) count on having to sell a good portion of the stock at a > deep discount (now I guess I'm just talking about clothes) in which > case the costs that are really important to recoup are the actual > production costs, if that. In any case, the phrase "high value added" > seems to be a much more ideological phrase than its mathematical > pretensions would indicate, mostly justifying the international > division of labor (and its consequent division of the payment through > the "value chain".) > > Just for reference, the place I have heard it most recently (and can't > find a link) was in some economist talking about what Chinese firms > wanted to do in the future, which was that they wanted to "move into > more high value added labor" like marketing domestic Chinese brands, > etc. > > First, I am interested in how accurate my description above is. Is > this what analysts mean when they talk about "high value added?" Is > this a common and/or legitimate concept in economic > literature/analysis? > > Second, I am trying to find where it comes from, theoretically and > colloquially; how long it has been used, etc.? > > Any guidance on any of the above would be appreciated. > > Thanks, > s > _______________________________________________ > pen-l mailing list > [email protected] > https://lists.csuchico.edu/mailman/listinfo/pen-l > -- Sandwichman _______________________________________________ pen-l mailing list [email protected] https://lists.csuchico.edu/mailman/listinfo/pen-l
