International Business Chapter 4 1 Which One The Following Refers The Privately owned Assets Used Produce The Commodities

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CHAPTER 4

ECONOMIC DETERMINISM AND EXPLOITATION: THE STRUCTURALIST PERSPECTIVE

Overview

Structuralism has its roots in the ideas of Karl Marx but today encompasses a much broader group of

scholars and activists. While most structuralists do not share the commitment to a socialist system as

envisioned by some Marxists, they do believe that the current global capitalist system is exploitative

and can be changed into something that distributes rewards in a more just manner.

Marx remains one of the most imposing figures in the history of political economy. With the collapse

of communism in the Soviet Union and Eastern Europe, it is tempting to conclude that “Marx is

Lenin expanded Marx’s study to account explicitly for imperialism, manifest in the dominant and

exploitative relationship of industrial countries with their colonial possessions. Analysis continues

with the work in dependency theory, modern world systems theory, and theories of imperialism. We

also survey some ideas of Antonio Gramsci. For many structuralists, globalization and globalism are

synonymous with neoimperialism.

Key Terms

•

economic liberalism

•

structuralism

•

historical materialism

•

dialectical process

•

modern world system (MWS)

•

core

•

periphery

•

semiperiphery

•

neoimperialism

Teaching Tips

• We call this perspective “structuralism” because it is the broadest name we could think of —a

big tent that includes Marx, Lenin, Wallerstein, and many others who have a somewhat

similar understanding of political economy. A common theme amongst these political

• One potential problem with using the term “structuralism” is that students might confuse the

four structures of IPE with the structuralist perspective. Despite the similarity in language, we

• Spend some time pointing out the differences between the structuralist perspective and the

economic liberal and mercantilist perspectives presented in the earlier chapters. In some

respects, mercantilism and economic liberalism are direct opposites, which make them

• As noted in the text, this chapter leaves out many of the ideas of Marx and Lenin, focusing

only on the notions that are really critical to an understanding of IPE. It is hard for a person

• Pick a policy issue related to globalization and have students study the issue from a

structuralist perspective. What contributions to our understanding of the issue does

structuralism provide that the other three perspectives do not?

1. Compare and contrast structuralism with mercantilism and liberalism in the following areas:

a. the dominant actors

2. Why is Marx considered determinist? Describe his three “laws” about the falling rate of

profit, disproportionality, and concentration.

3. Structuralists argue that capitalists use what kinds of mechanisms to control the subordinate

classes and get them to believe in the legitimacy of the capitalist system?

6. Outline some of the views structuralists have about globalization. Why do they tend to be so

critical of it?

7. According to Wendy Brown, what is responsibilization and what are its effects on society?

8. What are some of the key characteristics of the precariat? What social groups or segments of

10. What specific factors do structuralists think have contributed to rising inequality in

industrialized countries since the 1980s?

11. Structuralists argue that capitalists use a number of political and economic mechanisms to

Sample Multiple-Choice Questions

1) The basic idea behind structuralism is that

a) the structure of the international political economy—namely capitalism—conditions its

2) The process by which inherently unstable opposing economic forces and counterforces lead to

crisis, revolution, and to the next stage of history is called

3) Which one of the following refers to the privately-owned assets used to produce the commodities

d) private property

4) Which of the following is not one of Marx’s Laws of Capitalism?

a) the law of the falling rate of profit

5) Ideological manipulation occurs when

d) politicians convince voters that they support populist proposals.

6) Lenin believed that capitalism was able to postpone its crisis by:

7) Which of the following most closely resembles Marx’s definition of class?

a) Class is determined by ownership of capital, which can be mixed with labor to form a

8) How does neoimperialism differ from classical imperialism?

a) International organizations create laws and policies for member nations.

9) According to dependency theory, why do LDCs remain underdeveloped?

a) They are dependent on food aid to keep their population alive.

10) According to many structuralists, which of the following is not one of the outcomes of the global

financial crisis?

d) Many state officials promoting austerity policies to decrease debt and promote recovery.

11) Which of the following is not a characteristic of the transnational capitalist class (TCC)?

a) It promotes a culture-ideology of consumerism.

12) Which of the following is not a mechanism of “accumulation by dispossession”?

a) Saddling people with debt until they become insolvent

b) Privatization of state assets

13) Which of the following kinds of workers is most likely to be part of the precariat?

a) White-collar workers

14) Which economist asserts that, over the long term, the rate of return on capital tends to exceed

the rate of growth of GDP?

d) Karl Marx

15) Which of these statements is correct?

a) In 2014 approximately 15 percent of total U.S. post-tax income went to the top 1 percent

16) Which of the following an incorrect statement about the net personal wealth of different

segments of the U.S. population?

a) The bottom 50 percent of Americans had almost no net personal wealth between 1980