Inequalities in product and service flows

Unequal value capture

When most profit is taken at later stages in the core (e.g., branding, retail) While producers in the periphery earn very little

Exploitation of labour

When workers in the periphery are paid low wages or work in poor conditions to Keep costs down for companies in the core

Wage gap

A large difference between wages in the core and periphery for similar work or services.

Dependency

When a country relies on external aid, imports, or loans from the core, limiting its ability to develop independently.

Debt burden

When periphery countries borrow from core financial institutions, leaving them owing high repayments that restrict development.

Profit concentration

When most profits stay in the core (e.g., global banks or insurance companies), leaving the periphery with limited financial benefit

Unequal terms of trade

When periphery countries export low-value raw materials but import expensive manufactured goods or services from the core.

Undermining local economies

When food aid or imports reduce demand for local farmers' produce, weakening domestic markets

Resource curse

When countries rich in natural resources (like oil or cobalt) remain poor because profits are extracted by foreign companies.

Core control of branding/ technology

When the core dominates design, marketing, or technological processing, limiting the periphery's ability to move up the value chain.