 This fall in fixed capital enables Britain to do what? To export cheapened capital goods to India. So here is our, this link here, this is our world economy. Here's our national economy. UK national economy. So Britain begins to export cheapened capital goods as a result of intense competition within Britain and across Europe. The cheapened capital goods in turn, these are the imports in the numerator. The imports, the fixed capital in the production of raw cotton, the raw material, in where? In India, thousands of miles away. So this becomes cheapened. At the same time, this is going up. And if you're just wondering in the blackboard, just to review what we've done, if V falls as well, there's no effect on the total ratio because a fall in V is a rise in surplus value. Okay? So the price, the total price of the raw cotton, the raw material does not change if there's a fall in V because that's just like a fall in V is an increase in the SOV. It's the fall in the C that pushes this down and an increase in the productivity of labour in India. So the export of cheapened capital goods is production of raw material and cotton becomes cheapened because of a fall in the import price. The import price of fixed capital in India. That in turn then drops the price of the raw material. That feeds back to push this up. And we have then the world economy on this side. Why? Because the British are purchasing the cheaper raw material, which enables the profit rate to rise in Britain. And to go back to what we did. Okay? This is the machine. We started out with a falling rate of profit in the capital good industry in Britain. Okay? So why does it rise? Because of relative surplus value. Because the capital good industry in Britain is purchasing labour power. And the labour power in Britain is becoming cheapened because an important component of the means of production which is clothing is becoming cheapened. So here in Britain we have the value of labour power equal to the exchange value, use value of the V goods, cotton cloth times the UV cotton cloth. And so this is falling, which is helping the British capital good industry. They're not producing cotton shirts. They're producing capital goods, but they are a buyer of labour power, like all capitalists are. And the value of labour power is becoming cheaper to them because of what's happening in India. What's happening in India. Okay? If you couple that with the attempts of the British perhaps also to decrease the real wage. We have then a strong argument of why the rate of exploitation is rising in Britain during this period of time pushing up the rate of profit. Okay? So the world economy becomes a way to connect these different capitals competing with one another. And what I just did for the sea good could be done for V goods as well. Because it's not just raw cotton, but it's also all kinds of tea and coffee and sugar and meat and grains and tobacco and of course cocoa. All those important V goods are being produced in the third world. They're all becoming cheapened by the same process, right? Raising the productivity of labour and the cultivation of the V goods all over the world. Reduce Z is an input into the production of the teas and coffees and so forth, etc. Cheapening the unit values now just of not the C component, but now the V goods feeds back to raise the rate of exploitation, relative surplus value, which pushes up the rate of profit in all the different industries in Britain. Okay? So let me conclude this story on imperialism. The capitalist economy in Europe and US today and Japan and so forth is pushed to always to reduce the average cost in each and every firm, in each and every industry in order to survive. That's what competition is all about. Number one. Number two. As a result of that, the Europeans, the Americans, the Japanese, the Germans and so forth, they search the world for cheap C and V, as well as attempts to raise the productivity of labour within their home countries. To go back in time, after the 1850s, specifically, from the 1870s onward, the European capitalists tried to carve up the world into their different private places of production of C and V goods, and their private markets for their output. In other words, they tried to create empires associated with these different national countries. Why? To get a place, one of the reasons for that was to get a place in which they could produce the cheap C and V, as you just saw, to enhance the rate of profit in their countries, because they were competing so severely with one another, but also so that they could have a secure market for their exports. It may be obvious to you, but let me just put it down anyway, for these countries in Britain, what they're doing is not just producing for a domestic product, but they're also producing for a foreign market. And if they can increase their exports to India, their massive surplus rises. So the British are interested in selling their goods any place, because in that way they can realize more surplus. So it's not just cheap C and cheap V, but it's also an expansion of their markets. In other words, to expand their exports, their sales of these goods are broad. So the capitalists then compete in a variety of ways. They compete by attempting to raise the productivity of labor in their countries, by raising the composition of capital within their countries. They compete by tariffs, they compete by quotas, and during this period of time they also competed by carving up the world into their private spheres of production of cheap C and V and markets, and excluding obviously the other capitalists from entering those private spheres. And as a result of this, as I mentioned to you before, you could get war. So the British and the Germans could begin to go to war not only in Europe, but in Africa over cotton. The British and the Germans could begin to compete in Latin America over the sale of cheap textiles. The British attempting to prevent the Germans from selling their cheap textiles in the various countries in Latin America during this period of time. And out of this could come this, you know, this broader war. During this period of time, World War I, a famous Marxist, her name was Rosa Luxemburg, L-U-X-E-M-B-U-R-G. Rosa Luxemburg was born in Poland, Polish. She emigrated to Germany. She settled in Germany for the rest of her life. And she was one of the most well-known and eloquent debaters of Marxism in her time. During the war she came up with the following kind of argument, which I think follows from what we did today. She said, World War I represents in part a struggle of capitalists over super-profits. She said it's not a fight of the class of productive laborers, whether they be Germans or French or British. Rather it's a struggle amongst capitalists via the struggle, the scramble for super-profit, as I tried to show you. Her conclusion was that the British workers should not be fighting the German workers. The French workers should not be fighting the German workers because it wasn't their war. It was the war of the capitalists located in these different countries that were struggling with one another. And the army was mostly manned by soldiers who came from the working class, rather from the capitalist class. So hence why should the workers fight in a war that had nothing to do with them? That was really a different and striking argument. That was extraordinarily dangerous, of course, for these countries to continue the war. And so Rosa Luxemburg dealt with rather harshly by the German authorities, since she was undermining the war effort there in her theoretic, her Marxist analysis of World War I. So they locked her up. They threw her in jail. And unfortunately she was assassinated not too long after that. I don't remember the date, but just after, I think, World War I. So don't ever think in your studies from this course or in the other course that theories do not matter, because you have a striking example here, and I've given you other examples when we discussed the epistemology, of how theory matters. And in this particular case, how this Marxian theory gave a completely different insight into World War I. And you can extend this throughout the 20th century into the current wars today. Thank you, and I'll see you next time.