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The world stratification system - Essay Example

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With emergence of new class of capitalist owners, there was need to integrate with other countries for economic growth. Capitalism is a form of economic system where trade, industries and means of production of goods and services are controlled privately by businessmen with objectives of making profits in a global world economy. The major terms that enhanced creation of new ideas in economies by capitalists were trade, capital and investments among nations, movement of people and empowerment through knowledge. The capitalists had to find market for their products and services thus were attracted by how diverse the market could be if boundaries were opened beyond their nation (McCraw, 2011). They therefore influenced their governments to enter into trade agreements with other countries to promote economic growth. They argued that due to specialization in markets some countries produced goods and services other countries didn’t have and therefore this integration was necessary to promote inter-regional growth. The integration would increase economies, provide employment and exchange of ideas. Many nations were therefore much willing to integrate as they would all benefit from it. After the end of communism in Europe from 1980s, it benefited Asia greatly as they sourced for market for their goods and services from abroad. Its world share of GDP rose rapidly due to globalization and these countries decided to develop their market economy which included agricultural products and manufacturing industry of products such as steel, vehicles (McCraw, 2011). Asia countries such as China has managed to get markets for their exports in African countries and commanding a bigger share in Africa markets than Europe or America. This has enhanced Chinas relations with nations as they have a strong bargaining power in global summits and decisions. 2. Explain the major ways the core, semiperiphery and periphery nations are connected to each other in a world system. World system is an inter-regional and transnational relationship between countries based on division of labor. World system analysis show that capitalism has integrated labor forms within the world economy. Core countries mainly focus on skills and capital intensive production. Periphery and semiperiphery nations mainly focus on low skills labor production and production of raw materials. In view of this, these countries are integrated in order to exchange skills, products and services in aim of increasing economies (Polanyi, 2011). The core nations have very strong; central governments, state institutions and military base. These aspects make them have sufficient tax base thus providing a strong economic base. They are therefore highly industrialized with skilled manpower to manage the economies. Their main focus is manufacturing goods and services rather than the raw materials to export. Their main focus is new technologies and industries and tends to specialize in finance, information and service industries. All these aspects make them have so much influence over the noncore nations. The wealthy core nations look for investment opportunities in noncore countries. They have a strong capital base to invest in these nations. They also seek for cheap labor and raw materials for their industries and take them back there. The periphery and ...Show more
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The world stratification system Name: Subject: Institution: Date: 1. Explain how the fall of communism, the re-emergence of Asia and the changing complexion of the capitalist competition has influenced the way countries are connected to one another. The collapse and fall of communist that ruled in Eastern Europe and Soviet Union and consequent ditching of “communist” ideology by these countries resulted to creation of a new globe of capitalist owners…
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