The Modern World System

 Followed the crisis of the feudal system in Europe and helps explain the rise of
Western Europe to world supremacy between 1450 to 1670
 World economic system emerged
 Now a global economy with a global political system (the modern interstate system)
 Structured politically as interstate system – a system of competing and allying states
 A single global economy composed of international trade and capital flows,
transnational corporations that produce products on several continents, as well as
all the economic transactions that occur within countries and at local levels.
 Rise and fall of hegemonic powers
 
Interstate System – it is fundamental basis of the competitive commodity economy at
the global system level. It is also a system of international relations.