Any 3 valid points socialism global influence?
Answers
Globalisation, as the present phase of world capitalist development is known as, is a development that can be understood mainly on the basis of the internal laws and the dynamics of the functioning of the capitalist economic system. Karl Marx, in his seminal work Das Kapital, had shown us that as capitalism develops, it leads to the concentration and centralisation of capital in a few hands. As a result of this law, huge amounts of capital get accumulated. This, in turn, needs to be deployed to earn profits which is the raison d'etre of the system.
Towards the end of the 20th century, more specifically in the decade of the eighties, this process of centralisation led to gigantic levels of accumulation of capital. The beginning of the nineties saw the internationalisation of finance capital which had grown in colossal leaps. In 1993, the global stock of principle derivatives was estimated to be over $20 trillion. Subsequently, this globally mobile finance capital had acquired unprecedented dimensions. Currently, the turnover in the global financial transactions is estimated to be over $400 trillion, or, nearly 60 times the annual global trade in goods and services estimated to be around $ 7 trillion.
This huge accumulated finance capital required absolutely no restrictions on its global movement in search of predatory speculative profits.
Simultaneously, the huge accumulation of capital taking place with the multinational corporations, the assets of some of whom outstrip the combined GDP of many developing countries, also created conditions which required the removal of all restrictions on the movement of this industrial capital in search of super profits. Similar pressures also developed for the removal of all trade barriers and tariff protection.