What are the main elements of world systems theory?

Question

What will be an ideal response?

Answer 1

World systems theory argues that the world economy must be thought of as a single, whole system whose main characteristic is a certain division of labor. The capitalist world economy began when multiple states and a global market came together for the purpose of accumulating capital. The best way to accumulate profit is by creating a monopoly on the sale of a certain good, but in a system of multiple states, monopoly is difficult. Rather, states create a quasimonopoly using various market restrictions, which lasts long enough for them to reap significant profits on that good. However, these quasimonopolies are eventually challenged, and their market restrictions eventually expire, leading less advanced states to begin producing that good (but at much lower profits). This dynamic generates a division of labor between core states that produce leading products (which generate high profits) and peripheral states that produce lagging products (which generate low profits); semiperipheral states produce a roughly even mix of leading and lagging products.