Modern World System

Immanuel Wallerstein

developed the modern world-system theory

modern world-system theory

an approach, analytical tool, and basic framework for studying reality through the global economic activity that divides countries according to their economic power

modern world-system

also known as the modern capitalist world-economy

division of labor:

• Core

• Periphery

• Semi-Periphery

Core

areas that dominate the capitalist world economy and exploits the rest of the system

Periphery

areas that provide raw materials to the core and are heavily exploited

Semi-periphery

a buffer zone between core and periphery, sharing characteristics from both and can do the exploiting or be the exploited

Race to the bottom

the idea that for less developed countries to complete and succeed in the global economy, they must undercut the competition in various ways. Countries that get the work are those that win the race to the bottom

Industrial Upgrading

economic actors— nation, firms, even workers—”move from low value to relatively high value activites in global production networks”

Industrial Upgrading

• Assembly

• Original Equipment Manufacturing (OEM)

• Original Brand Name Manufacturing (OBM)

• Original Design Manufacturing (ODM)