THE MODERN WORLD-SYSTEM AS

A CAPITALIST WORLD-ECONOMY
PRODUCTION, SURPLUS VALUE &
POLARIZATION

1
WORLD
ECONOMY
A large geographic zone within which there is a division of
labor and significant exchange of essential goods as well as
flow of capital and labor.

CAPITALISM
A system that gives priority to the endless accumulation of
capital.
2
Capitalist world-economy
× A collection of many institutions, the combination
of which accounts for its processes, and all of
which are inter-twined with each other.

3
 Basic
institutions of
capitalist world
economy
Basic institutions of capitali
st world
economy
MARKETS FIRMS HOUSEHOLDS
• Local structure in • Normally the • Often have
which individuals competitors of common
or firms sell and other firms residences, but in
buy goods and a operating in the fact less frequently
virtual institution same virtual market than one thinks.
across space where
the same kind of
exchange occurs.

5
Basic institutions of capitali
st world
economy
CLASSES
STATUS-GROUPS
• Persons who are located in
• Or identities are ascribed
the economic system with
labels, since we are born
different levels of income
into them, or at least we
who have differing
usually think we are born
interests.
into them.

6
What sellers
always prefer
is monopoly.

7
Some terms

MONOPOL PERFECT
Y MONOPOL
QUASI-
Y
MONOPOL OLIGOPOL
Y Y
PROLETARIA
N 8
 WAYS OF
DOING
QUASI-
MONOPOLY

9
WAYS OF DOING QUAS
I-MONOPOLY
PATENTS RESTRICTION STATE
• Reserves S ON IMPORTS SUBSIDIES &
rights in an & EXPORTS TAX BENEFITS
invention for a (protectionists
specified measures)
number of
years

10
WAYS OF DOING QUAS
I-MONOPOLY
ROLE OF THE REGULATIONS
STATES AS WHICH ARE
LARGE-SCALE IMPOSE A
BUYERS OF BURDEN ON
CERTAIN GOODS PRODUCERS

11
FIVE KINDS
OF INCOME
IN THE
MODERN
WORLD-
SYSTEM
KINDS OF
INCOME
WAGE-INCOME
SUBSISTENCE ACTIVITY
PETTY COMMODITY
PRODUCTION
RENT
TRANSFER PAYMENTS

13
HAVE A
GREAT
WEEK
AHEAD!
SEE YOU AGAIN ON MONDAY!

14