Global

Capitalism
Loquez, Erick
P.
1-23
2nd Group
 WHAT’S GLOBAL CAPITALISM?

 is capitalism that transcends national borders. It is known as the

fourth epoch of capitalism in recognition of the three periods or
epochs that came before it.
 is the fourth epoch of capitalism. It differs from the other epochs in
one key way: The system, once organized and regulated within
nations to protect them, now transcends national borders. It's based
on the same ideology as classical capitalism, only now the holders of
the means of production extend their reach to everywhere around the
globe, monetizing cheap labor and resources, and profiting as best
they can .
According to William Robinson,
“Globalisation represents a new epoch in the
ongoing evolution of world capitalism
distinguished by the rise of a globally
integrated production and financial system,
an emergent transnational capitalist class and
incipient transnational state apparatuses”
.
THE CHARACTERISTICS OF GLOBAL CAPITALISM

1. Production takes place on the

global stage. Corporations can
produce goods in a variety of
places around the world. For
example, a car manufacturer
might make windshields in China
and engine parts in India, then
assemble the finished item in the
United States.
2. Labor can be sourced
around the world. As
corporations expand their
production across borders,
they are no longer limited to
using labor from their home
country. They can draw
from an entire globe's worth
of labor and locate
production wherever
workers are cheaper or more
highly skilled.
2. The financial system operates
globally. When corporations generate
and hold wealth around the world,
taxing that wealth becomes very
difficult. It is possible for global
corporations to develop complex
organizational structures and spread
wealth across multiple jurisdictions
to minimize tax liabilities. Playing
the system in this way gives them
great power to avoid corporate taxes
on accumulated wealth.
4. Power relations are transnational.
There now exists a class of transnational
capitalists that have the power to shape
the policies of trade, finance and
production at a global level –policies that
trickle down to national and state
governments.

5. Global system of governance. Global

capitalism requires a new system of
transnational governance. Core
institutions such as the World Trade
Organization, the United Nations, the
World Economic Forum, the
International Monetary Fund, the World
Bank and the G20 make the rules and
adjudicate global trade
 GLOBAL CAPITALISM
 Globalization has considerably reshaped the workings
of capitalism, including in particular the activities of
the state.
 Since the 1990s, the notion of “the global market”
has become common, not only in academic
economics, but also in newspapers and in everyday
gossip.
 Capitalism has been seen as the road that poor and
less developed countries should travel along in order
to flourish. Free trade in markets, rather than
protectionism, is the remedy that global economic-
political bodies, such as the International Monetary
Fund, propose.
 The shock therapy proposed by the international finance
institutions, which use the neoclassical model to predict
outcomes without considering the cultural and historical
contexts of the different “cases,” have often resulted in
disastrous consequences on the environment and local
communities. Nonetheless, there is empirical evidence
supporting the view that many countries, especially in Asia,
have seen great improvements in their living standard from
the 1970s onwards, due to increasing international trade,
though this may have little to do with trade theory.
 The critique of capitalism is not only directed to these effects, it is also argued that it is
unsustainable. Though capitalism per se perhaps cannot be blamed for ecologically
pollution and other effects of industrial development, it has become the target of
criticism. It may be becausethere is no global organization capable of fulfilling the role
of protecting and policing the global arena. Legislation and politics is, at the dawn of
the twenty-first century, still essentially national, though markets and the economy at
large are becoming increasingly global. This may cause tensions.

 Throughout history, capitalism has been criticized – from Aristotle and onwards – by
the nobilities, who looked down on capitalists and merchants. Later on, during the
period of industrialization and large factory production, capitalism became associated
with an immanently destructive and alienated form of society, as argued by Karl Marx.
GLOBAL CAPITALISM TO THE NATIONS

Germany is topping the list of one of

the most capitalist countries in the
world. Capitalism in Germany is found
in its institutions such as banking and
educational systems. German industries
have prospered because the country has
made it a priority to train its labor force
to succeed in various industries. These
various systems have worked together
to make a robust capitalistic market for
the country.
Americans are known to be risk takers
and capital makers. In the US it is
possible to begin a business of
humble means and expand it to
grow into a conglomerate business
model for people wanting to start a
new business. Capitalism in the US
has no color and welcomes anyone
willing to work hard, market a
product and to bring it to fruition.
Capitalism allows private
ownership to spur production of
goods and allows the private
owner to keep and track profits for
what sells.
China is placing a priority on the
development of its human capital and
offers it workers more on the dollar to
produce goods for export. China reformed
its economy and began to see economic
growth as a result the GDP doubled and
the government allowed a pro-business
and market attitude to rule in the country
sa a whole. China focused on exporting
goods and developed a new economy as a
result.