Transcript Global Capitalism (English)

Review

Three Elements of the Global Economy:
– Global system of production
– Global system of consumption
– Global system of trade (global market)
World GDP, Trade, FDI
Not Just Any Global Economy…

Capitalist economy, organized around:
– Private ownership and private profit
System tooled to maximize private
profit for private gain
Compare communist, family, barter
economies
Inherent globalizing tendencies


Globalize production in order:
– To attain the lowest price for natural
resources
– To attain the lowest price for labor
Globalize consumption:
– To bring new products
– To new markets
Consequences of Global Capitalism



Differentiation of Core and Periphery
Core – concentration of capital
ownership
Periphery – concentration of labor,
natural resources
Export High-Pay Jobs to Periphery
Wage Decline in Core (U.S. 73-97)
Export Degradation to Periphery
More Palm Oil Production, Less
Orangutan Habitat
Orangutan Orphans