How Capitalism Explains the World

Globalization is the phenomena seen when different countries around the world interact with each other more and more. It involves the spread of cultures, ideas, and languages. Capitalism has been one of the ideas that has been spread largely because of globalization and while other ideas are also being spread, capitalism has most been impacted by globalization. I believe that modern 20^th/21^st century globalization can almost be seen as a way of furthering capitalism.

Capitalism has benefited the most from globalization and has spread the most under globalization. With modern globalization, capitalism has been spread further and the number of countries with other economic systems has declined. China has a largely capitalist economy and the Soviet Union was unable to maintain its socialist system. Modern globalization has most helped capitalism and has challenged all the other economic systems. Modern globalization and globalization in general has provided a way to lower prices on products and has tried to get cheap resources to make cheap products. When a country like Bangladesh can produce textiles at a cheaper rate than the United States, this type of globalization most benefits the capitalist system. While globalization in the past has benefited other systems such as mercantilism, this modern globalization has mostly spread capitalism further. I believe that in this modern global economy, it is beneficial to have a free-market capitalist system and that if globalization were to continue at this rate, much like China, every rational nation would set up a free-market economy.

Capitalism and capitalist countries have benefited the most from modern globalization. Countries like the U.S.A., Japan, or Germany have been able to spread their culture further through their companies and products such as Microsoft, Toyota, or Adidas. Countries without major companies and products did not benefit as much from modern globalization. The U.S.S.R. although a powerful state, did not have any company that could rival U.S. companies in the global market. For this reason, the Soviet Economy lagged behind the U.S. economy, which led to the decline of the Soviet Union. Globalization, in general has always given certain countries more power than others. Modern globalization benefits the capitalist countries and allows countries such as the U.S., China, and Japan to gain more soft power and in the long run, hard power.

Franklin Foer in his book, How Soccer Explains the World, discusses how the globalization has affected the world’s largest sport, soccer.  In one of the sections, he discusses how soccer how globalization has driven Brazil’s soccer structure to a more capitalist system. In order to compete with European leagues, Brazil’s league has adopted a more capitalist system. Many people believe that globalization has brought a more capitalist approach to football, which will benefit Brazil in the long run. Whether this has benefited Brazil’s league or not, it has created a new system and shows that modern globalization has most benefited the spread of capitalism. It will end rule of the cartolas in Brazil’s most popular sport. Brazilian star Pele went to New York and began to embrace the capitalist system of the MLS and became the embodiment of modern capitalism in Brazilian soccer.

Modern globalization revolves around capitalism. It had spread mostly capitalist ideas and has most benefited countries with a capitalist economy. It has been evident in the world economy and the world political situation and is even seen in the most popular sport in the world. Today’s globalization goes hand in hand with capitalist ideas.