Breeana Gonzalez
Exercise 2
1. One of the basic factors of economic globalization is the existence of capitalism. What is Lewellen's definition of capitalism that he gives in the sector about the emergence of the global word? (You can just quote his definition with the page number.)
“Capitalism is an economic system of private ownership of property and the means of production; distribution is based on the profit motive and takes place within a free, or relatively free, competitive market in which supply and demand determine, or are supposed to determine, price. Capitalism emerged several times in the past - in ancient Mesopotamia for example and during various periods in China - but Western capitalism can be
traced back to the early 16th century in Europe This is, of course, the great period of empire and the growth of capitalism proceeded in close symbiosis from the very beginning. Today's globalization was inherent in capitalism's birth” (Lewellen pg. 11) 2. Adam Smith is seen as the "father of capitalism" and the opponent of mercantilism. Nonetheless, Lewellen wrote, "Mercantilism and capitalism were never clearly demarcated [...]". What does he mean? (Write a paragraph!)
Mercantilism morphed into capitalism during the colonial era. We see businesses employing people and producing goods from within their own country, with the economy being controlled by oppressors government. This changes where colonialism take over revs up, bringing in capitalism. The economic allegiance is to the European country of occupation not to local people or countries welfare, laws are placed to protect the business, not the workers, and military force is brought in to enforce these laws. In my opinion,
capitalism tries to disguise itself as mercantilism, under the guise of keeping the local economy booming, however, the profits leave the country, go into the European market, and leave the local economy lacking.
3) On page 12 of the Lewellen text, the author mentioned Eric Wolf's analysis
of the difference between state and pre-state production and labor division. Describe in a few words what the difference is.
Pre-state production was “Kin-Ordered”. Meaning it was lineage or the clan itself that divided up labor, what they would produce, how it would be divided up amongst the people and the concept of private property was non-
existent. Whereas state production saw an end to “Kin-Order”, and it became
tributary. The people were told what to produce, where it needed to be
