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THE MODERN WORLD – SYSTEM   The modern world-system is a capitalist world-economy which is the geohistorical system in which we live. The basic geohistory is that it was constructed in Europe in the ‘long’ 16th century, it expanded to cover the whole world by C.1900 (i.e destroying all other systems), and will meet its demise in the 21st century.   Some ways to upgrade the global economy are: THE UNITED STATES AND JAPAN   The world's two most strong economies are the United States and Japan. The United States has the highest deficit and debt burden in the world. Japan is the biggest borrower and surplus nation on the planet. The dollar-yen exchange rate has fluctuated wildly, rising from 360:1 in 1971 to 80:1 in early 1995 before falling to about 130:1 today. Over the last three decades, trade frictions have undermined the global trading system's stability, leading to extreme steps such as the United States' import surcharge in 1971 and Japan's accepta...

  THE MODERN WORLD – SYSTEM This history of colonialism inspired American sociologist Immanuel Wallerstein model of what he called the capitalist world economy. Wallerstein described high-income nations as the “core” of the world economy. This core is the manufacturing base of the planet, where resources funnel in to become the technology and wealth enjoyed by the Western world today. LOW-INCOME COUNTRIES • This are Wallerstein called the “periphery” – whose natural resources and labor support the wealthier countries. MIDDLE-INCOME COUNTRIES • Where such as India or Brazil are considered the semi-periphery due to their closer ties to the global economic core. THREE AASSUMPTIONS OF THE MODERN WORLD – SYSTEM: The Social System: • It is made up of cultural, political, and economic factors. The World Economy: • The world divided into three major regions, according to this theory (Core, Semi-Periphery and Periphery). The Interpretation: • State-strength and cultur...