Capitalism: The Propelling Force of Globalization

923 Words2 Pages
bulb-icon

Recommended: Globalization impact on society

Capitalism is the engine driving globalization. Therefore, the development of capitalism — from the age of mercantilism to today’s neoliberalism — is reflected in the way globalization has unfolded. Since the rise of mercantile capitalism in the 1500’s, the desire for profit has intensified the spread of people, commodities, ideas, images, culture, and capital across the globe. This process of global integration has brought (often by force) non-capitalist economies under the all powerful system of world capitalism that guides our lives today (Robbins 68). The evolutionary path of globalization has been punctuated by periods of change in capitalism facilitated by the adaptive radiation of profit seeking technological advancement in transportation, …show more content…

Neoliberalism was popularized by the Ragin administration and proliferated today by institutions such as the International Monetary Fund, World Bank, World Trade Organization, and Free Trade Zones (NAFTA). Neoliberalism holds that sustained economic growth is the path to human progress, markets should be free of government regulation, international trade barriers (such as tariffs) should be removed, privatization should be encouraged, and governments should prioritize infrastructural improvements that benefit commerce and enforce laws that protect private property rights (Robbins …show more content…

This transfer of power from the localized State, to deterritorialized TNCs revels that, today, international corporations rule the world -- perhaps this represents the ultimate stage of capitalist globalization. From the colonization of the global south to the rise of TNCs, capitalism has driven globalization and defined today’s world. The effects of capitalist globalization are imbedded in our daily interactions in ways beyond counting; everything from texting to inequality are products of globalization. As the finite natural resources – water, air, oceans, and hydrocarbons -- that have fueled the engine of capitalism deplete, it will be fascinating (and possibly terrifying) to witness the impact of capitalism slowing down on our globalized

Show More
Related

  • Neoliberalism: The Origins and Socioeconomic Impacts

    1632 Words  | 4 Pages

    Neoliberalism is an economic approach that promotes a laissez-faire model of trade (Edmonds-Poli & Shirk, 253). This economic model, widely supported by many Western economists, is based on three main principles: stabilization, structural adjustment, and trade liberalization. (Edmonds-Poli & Shirk, 254) Neoliberalism is a method to restructure the economy and the first step is to stabilize the fiscal supply. This happens through decreased government spending, leading to an overall decrease in employment, public services, and access to credit, while simultaneously increasing interest rates and the cost of imports (Edmonds-Poli & Shirk, 254). The next element of neoliberalism is structural adjustment which focuses on the shift from the public to the private sector. This shift is meant to minimize government involvement, which in turn stimulates competition in an open market economy to create a more efficient private sector (Edmonds-Poli & Shirk, 254). Finally, trade liberalization works to increase foreign investment and exports by lowering trade restrictions, such as tarif...

    Read More

  • Globalization and Transnational Corporations: Ethics and Global Climate Change

    886 Words  | 2 Pages

    These TNCs only began to increase their wealth in the 1980s and 1990s when they sought to increase their share into the world market. This was exercised by moving their capital from country to country according to Baylis et al. (2011). TNCs are the dominant figures in the world’s economy because of the about of net worth they entail. Globalization is the core of what TNCs execute because they are so wealthy that in terms of resources they rival the state and rules of international trade. Domestic economic policies have been changed drasticall...

    Read More

  • A Sanction of Diverse Culture in a Growing Unicultural Capitalistic Society

    1700 Words  | 4 Pages

    In this paper I will trace the roots of the nation-state and just how globalization affects it. Using examples such as the notable European Union and United Nations, I will then explain the differences between past nation-states and current sovereign states. By discussing the global economy, as well as the role the nation-state has in creating corporations for the global economy, I will prove that globalization fails to eradicate the nation-state solely because the ideals are too capitalistic. I will then examine how the nation-state still plays a vital role in a world rapidly moving towards one market with one nation and one set of rules.

    Read More

  • Neoliberalism in Brazil

    1298 Words  | 3 Pages

    Neoliberalism is a form of economic liberalism that emphasizes the efficiency of private enterprise, liberalized trade, and relatively open markets. Neoliberals seek to maximize the role of the private sector in determining the political/economic priorities of the world and are generally supporters of economic globalization. During the 1930s and the late 1970s most Latin American countries used the import substitution industrialization model to build industry and reduce dependency on imports from foreign countries. The result of the model in these c...

    Read More

  • Capitalism: Where Do We Come From?

    564 Words  | 2 Pages

    In today's society, there are many forces that shape the world. Three forces that have a major impact are Capitalism, Globalization, and the Natural Environment. These forces all play major roles in either influencing or informing my lived experiences.

    Read More

  • The Devastating Effects of Neoliberal Policies

    1391 Words  | 3 Pages

    Neoliberalism, also called free market economy, is a set of economic policies that became widespread in the last 25 years. The concept neoliberalism, have been imposed by financial institutions that fall under the Bretton Woods such as the International Monetary Fund (IMF), World Trade Organization (WTO) and World Bank (Martinez & Garcia, 1996). One of the famous economists published a book called “The Wealth of Nations” in which he said in it that free trade is the best way to develop nations economies (Martinez & Garcia, 1996). He and other economists also encouraged the removal of government intervention in economic matters, no restrictions on manufacturing, removing borders and barriers between nations, and no taxes (Martinez & Garcia, 1996). The main goal of the economic globalization was to reduce poverty and inequality in the poorest regions. However, the effects of the neoliberal policies on people all over the world has been devastating (MIT, 2000).

    Read More

  • The Major Tenets Of Neoliberal Capitalism

    833 Words  | 2 Pages

    The North American Free Trade Agreement (NAFTA) represented the core point of Neoliberal capitalism because the purpose of this agreement was to create a system of trade between the U.S., Canada and Mexico that would be free of tariffs and other trade barriers that had an effect on products and services passing between these countries. One day the bosses abandoned the factory after they had cut pay and instead of just leaving, the workers just decided to keep it running. The workers run it with no one main owner, but instead they are all the owners. This creates a system where every single worker is important and in one case where a worker needed money for medical bills, many workers came together and gave money out of their own pay to help this sick worker. They also hold elections in the factories so everyone has a say in who the main leaders of the factory will be and everyone has a chance in possibly being elected.

    Read More

  • Critical Review of Peter Dickens' Global Shift: Mapping The Changing Contours of the World Economy

    1167 Words  | 3 Pages

    Throughout the chapters assigned, Dicken focuses on the patterns and processes of global shifts, on the forms produced by the globalization of economic activities and on the forces producing those forms. He builds his arguments around three interconnected processes, which in his view are the reasons for reshaping the global economic map. Those are Transnational Corporations (“TNC”), States, and Technology.

    Read More

  • Impact of Global Competition on Trade Unions

    1559 Words  | 4 Pages

    In its essence, neo-liberalism advocates free trade, private enterprise, the free flow of capital across borders and, importantly, restrictions on the power of trade unions. These restrictions are important to study and discuss because the world today is no longer regulated by the orthodox laws of economics where supply equals demand (more or less). Instead, we witness radical inequalities and volatility in market conditions. Unemployment remains frighteningly high in many parts of Europe while many workers in parts of Asia and Africa suffer exploitation and work punishingly long hours in extremely poor conditions for a pittance.

    Read More

  • The Pros And Cons Of Neoliberalism

    1542 Words  | 4 Pages

    Neoliberalism has changed its meaning and definition over the years, but as of right now the Merriam Webster dictionary defines it as “a liberal who de-emphasizes traditional liberal doctrines in order to seek progress by more pragmatic methods.” This all means that the economics aspects of society are much more closed off and in favor of big businesses that tend to exploit consumers and those that work for them. It wants privatize business and allow for there to be free trade. Neoliberalism is also about reducing government involvement and reduce spending to the point where it can open up privatized sectors in the economy. Behind the Seams, Fruits of Injustice, and Maquilapolis all show the evilness of neoliberalism and what it does for

    Read More

  • Negative Effects of Globalization

    671 Words  | 2 Pages

    ...o we can achieve our dreams in life: “we are now living in a world where time and space don’t matter anymore” just like J.Mittleman said. Globalization as we just learned is relative, whether it’s an opportunity or an exploitation depends on where you sit and how you look at the world. Kent, J., Kinetz, E. & Whehrfritz, G. Newsweek. Bottom of the barrel. - The dark side of globalization (2008/March24). David, P. Falling of The Edge, Travels through the Dark Heart of Globalization..Nov 2008. (p62)

    Read More

  • Globalization: The Path to Destruction

    1766 Words  | 4 Pages

    Just imagine waking up in squalor, a once prominent society, now a desolate wasteland. All because foreign interest has raped your land of its natural resources and you seen not a cent in profit. Although, globalization is unifying the worlds developed nations and is bringing commerce to nations that have struggle in past years. True, globalization has many positive effects but do the pros outweigh the cons. In this essay I will discuss Globalization ruining the integrity of many countries and also is forcing many undeveloped nations into a bind, and is causing economic distress on some developed nations. Also, due to economic globalization the nations of the world are diluting their culture, sovereignty, natural resources, safety and political system. My goal is not to change your way of thought, but only to enlighten you of the negatives of global economic expansion.

    Read More

  • The Disadvantages of Globalization

    1583 Words  | 4 Pages

    Shawki, Ahmed, Paul D’Amato (2000), “Briefing: The Shape of World Capitalism,” International Socialist Review, [http://www.isreview.org/issues/11/world_capitalism.shtml], accessed 19 May 2012.

    Read More

  • Argumentative Essay On Globalization

    891 Words  | 2 Pages

    Globalization’s history is extremely diversified and began during the beginning of civilization. Now we live in a world that is constantly evolving, demanding people to use resources in locations that are very difficult to obtain certain resources. This could make it completely impossible to operate in these specific parts of the world. However, globalization allows people across the world to acquire much needed resources. Globalization creates the opportunity for businesses to take advantage and exploit the ability to take part of their business to a different country. Nevertheless, globalization is part of today’s society and will be involved in virtually all situations.

    Read More

  • Globalization Essay

    1112 Words  | 3 Pages

    Globalization, the acceleration and strengthening of worldwide interactions among people, companies and governments, has taken a huge toll on the world, both culturally and economically. It’s generating a fast-paced, increasingly tied world and also praising individualism. It has been a massive subject of matter amongst scientists, politicians, government bureaucrats and the normal, average human population. Globalization promoted the independence of nations and people, relying on organizations such as the World Bank and also regional organizations such as the BRICs that encourage “a world free of poverty” (World Bank). Despite the fact that critics can argue that globalization is an overall positive trend, globalization has had a rather negative cultural and economic effect such as the gigantic wealth gaps and the widespread of American culture, “Americanization”; globalization had good intentions but bad results.

    Read More

More about Capitalism: The Propelling Force of Globalization

Open Document