GLOBAL CAPITALISM Meaning and
Definition
-
Global capitalism is an economic system characterized by the integration and interdependence of economies around the world, enabled by the free movement of goods, services, capital, and information across borders. It refers to the dominant form of capitalism that has emerged under globalization, where countries participate in international trade and investment, and multinational corporations play a significant role in shaping the global economy.
In global capitalism, market forces drive economic activity, and profit maximization becomes the primary objective for businesses. Key features include the privatization of industries, deregulation of markets, and the promotion of free trade. Countries engage in competition to attract foreign investment and develop comparative advantages in specific sectors to enhance their global competitiveness.
Global capitalism has had far-reaching impacts on societies and economies worldwide. Proponents argue that it has led to economic growth, technological advancements, and increased living standards. Critics, on the other hand, highlight concerns about income inequality, exploitation of labor, environmental degradation, and concentration of economic power in the hands of multinational corporations.
The rise of global capitalism has also given rise to various global institutions, such as the World Trade Organization and the International Monetary Fund, which seek to facilitate and regulate international trade and investment. These institutions play a role in shaping the rules and standards governing global economic interactions.
Overall, global capitalism represents the dynamic and complex system through which the world's economies are interconnected and economies operate, impacting both the lives of individuals and the development of nations.
Etymology of GLOBAL CAPITALISM
The word "global capitalism" is a combination of two terms: "global" and "capitalism".
The term "global" originates from the Late Middle English word "globle", which was derived from the Old French word "globle" or "globe", meaning a sphere or ball. It entered the English language in the 16th century and was initially used to refer to the entire world or something worldwide in scope.
The term "capitalism" has its roots in the Latin word "caput", meaning "head" or "capital". It evolved through various European languages and was eventually coined in English in the mid-19th century. It refers to an economic system wherein the means of production and distribution are privately owned and operated for profit.
