INTL 1101 Lecture 1: International Affairs Notes-
8 Dec 2016
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Document Summary
Chapter 6: the modern world-system as a capitalist world-economy: world system expanded over time to cover whole glob, world economy: large geographic zone within which there is a division of labor. Not all capitalist entrepreneurs succeed in accumulating capital -> if all succeeded, each would be likely to obtain very little capital. Upside to many rms: size brings down costs through economies of scale (bulk buy) but size adds costs of administration + managerial inef ciencies. Hence rms grow large then decrease in size (zigzag formation) unequal exchange: not the only way of moving accumulated capital from politically weak regions to politically strong regions. When exchange occurs, competitive products are in a weak position and quasi-monopolized products are in a strong postion. As more rms enter market of the former quasi-monopoly, there will be overproduction (too much production for the real effective demand at a given time) and thus increased price competition = lowering rates of pro t.
