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what EconomyandColonialism Apply you have read in Chapter 8 regarding colonialism and the expansion of capitalism in modern industrial societies to the article, Marketers Pursue the Shallow Pocketed. Is the information being discussed in this article another example of colonialism? Why or why not? Identify two potential positives and two negatives direct marketing of the poor has on people and their economies. What theory of development is most applicable to the expansion of global markets to poor, low income, and indigenous communities? ECONOMY AND COLONIALISM Tarasha Hickson-Smith ANT.101 WEEK 4 DISCUSSION 2 Colonialism is the domination of one society by another, so yes this is a clear example of a company from a rich society capitalizing on a poor society (Nowak & Laird, 2010). Most indigenous countries like Brazil were forced to switch to capitalist mode of production in order to control the economy. This switch was more than likely a collaboration between the government of Brazil and predatory merchant MNCs like McCann World Group that targeted the low-income consumers. There are obvious negative effects direct marketing has on poor people and their economy. For example, the homemakers may have found a way to supplement their low income by making some of the products themselves and selling them or trading them for a fair price. But by the bigger companies mass producing cheaper products and putting them in visible markets this would cut their supplemental income. Another negative is the poor quality the product will now have as a result of the new cheaper price, causing them to have to repurchase the product multiple times because of its low quality. However, there is a positive side to direct marketing it treats the low income consumer as a valued customer giving them a chance to buy similar products as upper class consumers at a price they can afford. Secondly, the retailer can restock the shelves with brands and products the low income consumer can identify with. This allows the low income merchant and consumer a better shopping experience that fits their income bracket. The theory that explains this at best is the dependency and underdevelopment theories. The applicable point made by the Economic Commission for Latin America (ECLA), about the reversed control of the land and its natural resources had a direct effect on indigenous communities and the expansion of global markets to poor, low income people left with nothing (Nowak & Laird, Globalization, Development, and Native People: Dependency and Underdevelopment Theory, 2010). This forced them to be dependent and poor scrapping to buy products they used to grow and produce naturally. Works Cited Nowak, B., & Laird, P. (2010). Globalization, Development, and Native People: Dependency and Underdevelopment Theory. In CULTURAL ANTHROPOLOGY (pp. chap 8.9, para 2). San Diego, California: Brindgepoint Education. Nowak, B., & Laird, P. (2010). The Industrial Revolution : Economy. In CULTURAL ANTHROPOLOGY (pp. 8.2, para. 6). San Diego, California: Bridgepoint Education Inc. The result is what is called oligopoly, a situation in which a few major corporations control the production of major industries. For example, as of 2004, the top five oil companies (ExxonMobil, Chevron, ConocoPhillips, BP, and Royal Dutch Shell) controlled 14.2 percent of global oil production, 48 percent of U.S. oil production, over 50 percent of domestic oil refinery capacity, and over 60 percent of the retail gasoline market (http://www.citizen.org/documents/oilmergers.pdf). Continued corporate expansion leads to monopoly capitalism, in which large corporations dominate the market by controlling prices and eliminating competition. In socialism, a system with no private corporate ownership, there are instead stateowned enterprises (SOEs). Today, corporations achieve profits by controlling the marketplace through the buying and selling of smaller companies. When corporations increase in size and wealth, they expand beyond national borders and become global, with subsidiaries in a variety of regions; these are known as multinational corporations (MNC) or transnational corporations. Examples of MNCs include Unilever, Toshiba, Panasonic, and General Electric 8.2 Economy (use info for replies) (Nowak & Laird, The Industrial Revolution : Economy, 2010) The Revolution Industrial marked an exploding demand for raw materials, labor, and markets. Colonial expansion provided all three. Colonialism Picking tea on a plantation in Indonesia. Colonialism is the domination of one society by another. During the Age of Mercantilism, the motive for colonialism was to gain access to luxury items such as gold, tea, and spices. The Industrial Revolution changed the economic policies of colonial nations, who began to see the colonies as sources for raw materials for European factories and as new markets for manufactured goods. To be successful, colonial powers needed to "persuade" people to work for them and buy their products. Colonial authorities instituted a taxation system on the colonized people. This served a dual purpose. The revenues supported the colonial administration, including government bureaucrats and military personnel. Taxation also forced the local people to produce marketable exports or to work for Europeanowned plantations and mines to generate income to pay taxes. Native people lost their ability to be selfsufficient; people had to work in order to support their families and to pay the taxes that colonial governments demanded, as described in Case Study 8.3. ShawnGauthney Week4Discussion2 Hello Shawn, Although I do agree with you about McCann World Groups main focus being profit and under pricing, there is no real threat of them losing their cultural identity. They still have a choice to support their efforts or not and still keep the traditions of their culture. Now if they were being made an offer to build the factory that produced those very items being offered, that may be considered as societal domination (Nowak & Laird, The Industrial Revolution : Economy, 2010). These trendy new ways of colonialism are becoming somewhat a commodity the way they give these same old tricks a new face. For some cultures it is a big success to upgrade and be civilized according to our standards, and in other cultures it is pure culture shock to even suggest one change in their traditional routine of living. If big companies want to be a real success they must do their homework and be sensitive to the needs of those that they request to do business with, in order to fulfill their own need to obtain status of being a globalized company. Works Cited Nowak, B., & Laird, P. (2010). Globalization, Development, and Native People: Dependency and Underdevelopment Theory. In CULTURAL ANTHROPOLOGY (pp. chap 8.9, para 2). San Diego, California: Brindgepoint Education. Nowak, B., & Laird, P. (2010). The Industrial Revolution : Economy. In CULTURAL ANTHROPOLOGY (pp. 8.2, para. 6). San Diego, California: Bridgepoint Education Inc. Economy Hello Sarah, SarahDeane I agree with the point about that the outside companies provide a quality product at an affordable price; however, it does not necessarily deplete their values. There must be something about the product that catches a persons eye. That person still has a choice to be a consumer or non-consumer of that particular product, they also can request the product to contain something from their culture; it may be a name change, where they give the product being marketed to them a common name that is relatable; or it may be a packaging preference that may resemble something used in their culture (Nowak & Laird, The Industrial Revolution : Economy, 2010). These companies aim to please all in the name of profit and globalization. In America we have adopted something from every culture you could name, so what we have to offer as American businesses is probably a cultural blend of all that has influenced us as consumers (Nowak & Laird, Globalization, Development, and Native People: Dependency and Underdevelopment Theory, 2010). Henceforth, I believe when an American manufacturer reaches out to another culture the purest intentions is to share, and fill the needs of someone else less fortunate. Works Cited Nowak, B., & Laird, P. (2010). Globalization, Development, and Native People: Dependency and Underdevelopment Theory. In CULTURAL ANTHROPOLOGY (pp. chap 8.9, para 2). San Diego, California: Brindgepoint Education. Nowak, B., & Laird, P. (2010). The Industrial Revolution : Economy. In CULTURAL ANTHROPOLOGY (pp. 8.2, para. 6). San Diego, California: Bridgepoint Education Inc. ... View Full Document

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