Imperialism, Capitalism and Globalization

Imperialism, Capitalism and Globalization

Introduction

Imperialism has brought in several economic advantages to the economies. Since the business needs and demands are transforming, the forms of imperialism has been changing as well. There are three major phases that can be identified: classical imperialism, indirect imperialism and globalization (Veltmeyer, 2010). We will discuss how the imperialism affected the world's capitalism after globalization and two world wars. For this discussion we will consider the significance of globalization. Furthermore, the paper will also discuss the benefits and drawbacks of globalization for the world's economy.

Discussion

It is important to note that capitalism has been all the time an international system and the transformation in the nature of imperialism has the reflection of this international system. Furthermore, it is important to note that the changes in imperialism are the responses of development in capitalism (MacLaren & Farahmandpur, 2005). However, the affects of imperialism on capitalism of the whole world is discussed in the following section:

Effect of Imperialism on Capitalism after World Wars and Globalization

Direct conquest brought in benefits and opened up the doors of every state for capitalist economy. Therefore, it led to more exploitation of raw material and labor and increased the global trade. In this way, the states and the industries of the invading nations were boosted with respect to profits thus it allowed the number of capitalist economies to increase. In addition, it increased the social parasites in the developed nations (Zarembka & Desai, 2011).

According to the analysis of Kropotkin, the Belgian, French, British, and other capitalist economies through ease of exploiting countries for their developed industries now have control over the labor of a large number of people in East Europe, Africa and Asia. As a result, the numbers of these people in the leading developed countries of Europe, who are living off the work of others, do not slowly decrease. This expansion procedure in a non-capitalist region is helpful for the capitalist region to both the subjective or objective pressure of economy on the business cycle. Since wealth is pillaged from the primitive states exports back to Home Counties, the levels of profit can be secured from the demands of working class as well as from any relevant reduction in surplus value production resulted from increased capital investment. In fact, most of the time imperialism allowed the working social class of the undeveloped countries to obtain better wages and conditions of living as pillages wealth was imported to the countries (Lorimer, 2002).

In addition, since the young people from poor families emigrated to the urban colonies for earning better living for themselves on the stolen region, the wealth obtained from these colonies were helpful for them to overcome the decreasing supply of labor at home region which would improve its market place. This pillage was also helpful for the reduction of competitive pressure on the economy of nation. Obviously, these benefits of the conquest do not have potential to completely stop the business cycle not eradicate the competition since the ...