Global Capitalism
Introduction
Today’s world is moving more and more toward globalization every day. Countries and regions engage in international trade with other regions at higher and higher rates as time passed. These countries, many of who have different economic systems, may be pushed to incorporate or assimilate with the dominant economy system in international trade. Capitalism seems to be the form of economy selected to lead the way throughout the increasingly globalizing world. Throughout this paper, I will discuss whether a global capitalist economy is pushing countries to converge along a similar economic path or has it generated divergent economic outcomes.
Capitalism
Capitalism is an economic system in which industries, trade, businesses, and manufacturing are controlled by private ownership with the goal of generating profits in a market economy. Instead of governments or overseeing organizations setting the price for assets, goods, and services, the price for these things is set by the parties involved in the transactions. In lieu of regulations, the market controls the price for goods and services.
Global Capitalism
Globalization is the adoption by other countries and regions of some of the political, economic, technological, and social aspects of other countries and regions throughout earth with which they interact or trade. Globalization includes some of the erosion of the uniqueness of every culture as the cultures pick up aspects of other cultures and move closer and closer to a middle ground.
The rise in globalization includes the increase use of the economic system of capitalism in international trade. The United States has been a capitalist country since the days of the Declaration of Independence. Other countries, however, have used other economic systems to control their economies. Most countries in Europe have an economic system that is a mix of capitalism and socialism. Furthermore, communist regimes still exist, although these regimes moved more toward socialism in the 1980s and 1990s.
Capitalism, however, is still the dominate system used for international trade as international government organizations do not set the price for assets, goods, and services exchanged; the market must bear the burden of setting the price for these exchanges. This had led countries with differing economic systems to incorporate aspects of capitalism into their systems. Countries such as China, Mexico, and Hungary have move toward more open markets and this has been met with economic success by those countries. Furthermore, Russia is moving more toward an open economy and many agree that this is to their benefit as well as the rest of the countries with which Russia affects or interacts. The fact that differ countries have developed some aspects of capitalism does not mean that they have developed in the same way. In fact, although East Asia have experienced success with open markets, the result for Latin American has shown that the same global capitalist system does not affect different regions in the same way. Even if the majority of countries engaging in international trade have incorporated aspects of capitalism into their economies, this is not to say that they are converging on the same path. The outcomes for each country and region a bound to have some distinct differences. Furthermore, countries still have their own economic systems for intra-national trade and business operations.
