ABSTRACT
This chapter concentrates on the geographical circulation of exchange value in a fully competitive space economy. The chapter examines three such forms: the exchange value of commodities as measured by prices of production, their labour value, and the quantities of commodities in circulation. It describes the spatial structure of commodity production under full capitalist competition, the location of commodity manufacturing, the prices charged for the commodities and the patterns of commodity circulation and trade that exist between regions. For any fixed geographical distribution of production methods and real wages among a group of urban-centred regions, it is possible to determine three attributes of a fully competitive capitalist space economy: the patterns of inter-urban commodity flows, the spatial distribution of prices of production and the equalized rate of profit that would prevail. Transportation is a commodity that is consumed in moving other commodities from producers to consumers.
