Global Capitalist Economy

GDP

measurement of all the goods, services, etc made in one country

PPP (Purchasing Power Parity)

measure of the true value of a currency by comparing the cost of a standarfized good in different countries.

GDP Per capita

GDP divided by population= average GDP per person

Accumulation Process

M, C, C’,M’, M

Symbolizes how capital expands and regenerates itself

M (Money)

Initial Investment which is used to purchase raw materials and labor power necessary for production

C (Commodities)

Capitalist purchases commodities, including labor power (L) that transforms commodities into new ones

C’ (New, more valuable commodities)

Creation of a new commodity that has a greater value than the initial commodity(C). 

M’ (More money)

Capitalist sells the new, more valuable commodities (C’) on the market for more money. The capitalist then takes M’ and invests it back into the cycle to generate more money. 

Social Division of Labor

apportions all labor tasks involved in making a commodity to a single individual

Technical Division of Labor

separation of the labor process into specialized labor tasks

Impacts of Technical Division of Labor

• workers are paid less

• expedites the production process

• spread by the industrial revolution

Unequal Exchange

exploitation of global minimum wage differentials by employing foreign low-wage workers

Factors that contribute to unequal exchange

GDP Per Capita, Global militarization Index Global Diplomacy Index

Global Militarization Index

The total military expenditure, military personnel, and heavy weapons of a country in a year

Global Diplomacy Index

The total number of embassies, consulates, and permanent missions of a country in a year

Core Countries

engage in the most exploitation through unequal exchange (ex US, Canada, most of Europe, Japan, Australia

Periphery Countries

the most exploited through unequal exchange

Semi-periphery countries

exploited by core countries while still exploiting other countries themselves