Category: capitalism

What is global capitalism

Capitalism is an economic system that dominates in most of the modern countries around the world. It comes in different forms, so it is a widely used and preferred system for many countries. Globalization leads toward growing different economic systems at global level, and although capitalism dominates economies in most countries, it is not connected to one specific system and has several definitions. The term global capitalism is not fully defined so it is mostly used as a way to describe what is going on with the world economies. Fact is that today capitalism can be divided into four categories – state-led, market-led, social-democratic and corporate capitalism.

The reason why the definition for global capitalism is not very clear is because none of the mentioned four forms of capitalism is really global. For example, social-democratic form of capitalism is preferred way for many European countries, while market-led capitalism is most dominant in the United States. Germany for example has a state-led type of capitalism, while Asian countries mostly follow the corporate capitalism. Many factors influence the type of capitalism that is being implemented in the country, so that is why there is no global type of capitalism in all countries.

All four types of capitalism mentioned have different advantages and participate in global movements of world economy. One thing that all types of capitalism have in common is that they all focus on producing things to make profits. Countries are always competing, but they also cooperate and use resources of their friendly countries in order to exploit bigger global markets. They do so in order to grow economically and to raise the economic standard of their countries. Countries exchange different goods and are taking advantage of numerous things in order to contribute to the global economy. Cultural exchange is also at highest levels now, and one example is that many urban areas are featuring Chinese restaurants, while in China western brands are starting to penetrate the market. Buying and selling goods and exchanging services and products are some of the basic principles of capitalism. The boundaries are starting to go away, so soon enough we may witness one global form of capitalism in the world.

Defining global capitalism is challenging because it involves numerous things that affect the world economy. There are many attributes that define global capitalism, so we can say that global capitalism is basically the tendency for interaction between countries in order to contribute to the world economy through cultural and economical exchange. Global capitalism will never be operated by one center, so the main point behind it is the cooperation between countries. Capitalism as an economic system constantly gets developed and improved in different ways, so we might witness another form coming up in the near future. Fact is that capitalism is what moves the world and that leads to bigger prosperity of countries. Global capitalism is the driving force for economic development of the countries in the world, so we are likely to see more countries joining forces to take advantage of it.

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