Social Stratification and Inequalit1

Social Stratification and Inequalit1 - Powerful countries...

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Social Stratification and Inequality World System Theory Immanuel Wallerstein ’s world system theory posited that as societies industrialized, capitalism became the dominant economic system, leading to the globalization of capitalism. The globalization of capitalism refers to the adoption of capitalism by countries around the world. Wallerstein said that as capitalism spread, countries around the world became closely interconnected. For example, seemingly remote events that occur on the other side of the world can have a profound impact on daily life in the United States. If a terrorist attack on a Middle Eastern oil pipeline interrupts production, American drivers wind up paying more for fuel because the cost of oil has risen. Neocolonialism Sociologist Michael Harrington used the term neocolonialism to describe the tendency of the most industrialized nations to exploit less-developed countries politically and economically.
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Unformatted text preview: Powerful countries sell goods to less-developed countries, allowing them to run up enormous debts that take years to pay off. In so doing, the most developed nations gain a political and economic advantage over the countries that owe them money. Multinational Corporations Sometimes, multinational corporations , large corporations that do business in a number of different countries, can exploit weak or poor countries by scouring the globe for inexpensive labor and cheap raw materials. These corporations often pay a fraction of what they would pay for the same goods and employees in their home countries. Though they do contribute to the economies of other countries, the real beneficiaries of their profits are their home countries. Multinational corporations help to keep the global stratification system in place...
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