Exchange Value - Exchange Value and Commodification

Exchange Value and Commodification

In the first chapters of Das Kapital, Marx traces out a brief logical summary of the development of the forms of trade, beginning with barter and simple exchange, and ending with a capitalistically produced commodity. This sketch of the process of "marketisation" shows that the commodity form is not fixed once and for all, but in fact undergoes a development as trade becomes more sophisticated, with the end result being that a commodity's exchange-value can be expressed simply in a (notional) quantity of money (a money price).

However, the transformation of a labor-product into a commodity (its "marketing") is in reality not a simple process, but has many technical and social preconditions. These often include:

• the existence of a reliable supply of a product, or at least a surplus or surplus product.
• the existence of a social need for it (a market demand) that must be met through trade, or at any event cannot be met otherwise.
• the legally sanctioned assertion of private ownership rights to the commodity and the right to trade it.
• the enforcement of these rights, so that ownership is secure.
• the transferability of these private rights from one owner to another.
• the (physical) transferability of the commodity itself, i.e. the ability to store, package, preserve and transport it from one owner to another.
• the imposition of exclusivity of access to the commodity.
• the possibility of the owner to use or consume the commodity privately.
• guarantees about the quality and safety of the commodity, and possibly a guarantee of replacement or service, should it fail to function as intended.
• the ability to produce the commodity at a cost and sale-price sufficient to yield an adequate and predictable income or profit.
• the ability to produce and trade a commodity without too much risk of a type that would undermine the business.

Thus, the commodification of a good or service often involves a considerable practical accomplishment in trade. It is a process that may be influenced not just by economic or technical factors, but also political and cultural factors, insofar as it involves property rights, claims to access to resources, and guarantees about quality or safety of use.

"To trade or not to trade", that may be the question. The modern debate in this regard focuses often on intellectual property rights because ideas are increasingly becoming objects of trade, and the technology now exists to transform ideas into commodities much more easily.

In absolute terms, exchange values can also be measured as quantities of average labour-hours. By contrast, prices are normally measured in money-units. For practical purposes, prices are however usually preferable to labour-hours, as units of account, although in capitalist work processes the two are related to each other (see labor power).