Macroeconomics Of Japan Essay

Japan is the greatest economy in Asia, in terms of GDP, as well as human resources and technology. The nation was once predicted to be the next superpower nation exceeding the United Sates and countries of the European Union. Today, it is the world’s third-largest economy after the United States and People’s Republic of China. It is also the second-largest economy by real GDP and market exchange rates. The economy is highly efficient and competitive especially in the services industry, which is originated from a good cooperation between the government and the industry, a strong work ethic and the mastery of high technology. Recent analysis however, revealed that the economy is currently under serious problems. Observers and even Japan’s own officials have admitted that the economy is no longer ‘first class’. There are even worries that Japan has no longer sustain the capacity to be one of the world’s greatest economies anymore, and the economy will slowly degrade into one of the typical Asian economies. Analysts stated that such an occurrence has happened before, when Argentina which were once considered one of the strongest economies in the world degraded into typical third world economies today. Is this the case with Japan? In this paper I am discussing the problems that stayed within Japan’s economy and elaborating their probable causes. Afterwards, I will elaborate the macroeconomic policies which have been performed by the Japanese government in response to these issues and how these policies have affected the economy. The period of discussion is 1997 -2007, which are the years after the ‘Japan economic bubble’ bursts, to the present day. II. Japan Economic Issues 1997-2007 II. 1. Background of the Issues – Japan Economic Bubble Japanese growth rates have been nothing less than spectacular for decades. In the 60’s the average real economic growth rate was 10%, in the 70’s it was 5% and in the 80’s it was 4%. Japanese financial system however, was based on a bureaucratic fiat. The government believes that by injecting sufficient amount of capital into the market, the economy will experience a rapid rate of growth. Thus, the financial system was set to inject cheap capital into the business sector (Hamada, 2004). In support of this policy, banks even reluctant to report –in bad loans. In short, companies were encouraged to borrow and expand continuously. Companies would then borrow using assets like land and then invest the money into the stock market. After the market rises, the company would have latent profits which will be used to buy more land and therefore, the cycle continues. These cycles were the origins of the huge real estate and stock market bubbles. These bubbles however, cannot be sustained forever, and when the Bank of Japan (BOJ) raised interests rates, the bubble bursts in 1989 and leaving commercial banks in Japan with a mountain of bad loans. II. 2. Stagnant Economic Growth Afterwards, assets prices began to decline rapidly. Japan’s economy was going through a long period of deflation since then, partly caused by the appreciation of yen. Because of this appreciation, the CPI increase rate dropped into negative in 1995. The expanding deflation caused Japan’s economy to remain in a static condition. Moreover, the deepening deflation was accompanied with weakening state of real economy like growth rates declines and increased unemployment rates. Between 1992 and 1994, real growth rates are below 1%. It even dropped toward a negative range in 1998. Jobless rate have also suffered a rise of 3. 4 % from 2 % in 1990 to 5. 4% in 2003. The economic downsizing in 1997 put Japanese economy into a new state of deflation (Oliver, 2002). II. 3. Deflationary Trap It was not considered serious until the inflation rate slipped to below zero in 1997. In this phase, observers believed that Japan was in a ‘deflationary trap’. However, because of various long-term considerations, the government has implemented policies to maintain inflation stable near the zero mark. In this situation however, the central bank cannot use its traditional instruments to deal with the issue. As a result, deflation deepens even further and the market intensified expectations toward further and longer period of deflation. Due to the increase in real rate of interest, consumer spending and corporate investments were discouraged. Unfortunately, the shrinking total demand in the macro economy further worsen the deflation. If not dealt with accordingly, this could lead into self-sustaining deflationary process (Campbell, 1992).

Moda Textile Factory: Bishkek, Kyrgyzstan Essay

1. How have Sergei and Olga’s lives change in Soviet days? Are their lives better? After the collapse of Soviet Union, Kyrgyzstan’s economics was slowdown since they was moving to market-based economy. Sergei and his wife lost their job and moved to capital. They borrowed money from family and friends starting business outside of the capital. After long period of time doing business over China, India, and Turkey, they did a better job and had enough capital for a largest department store in town. Their business was getting better and they built their own sewing factory of high quality apparel. The clients are wholesale traders who sold their goods to retailers in Kazakhstan and Russia. They had many difficulties in raising capital, exporting to new market, and many small local competitors. Even still having many challenges, their lives were much better than the period of Soviet Union. 2. What is Moda Textile Factory’s competitive advantage? How can it be used to expand the business? Firstly, Moda Textile Factory had a good relationship with their customers. Sergei had worked with most of his customers for many years, some of them were old friends of family, and also friends he knew during buying trips to Turkey. These loyal customers could bring him a lot of orders. Secondly, Moda Textile provided customer high quality products. They also had planned to make fashionable Italian imported cashmere coats. Different with other sewing workshops, Moda Textile want to develop their market not only in Kyrgyzstan but also in USA, Russia, and Europe. With a bigger target market, they will have more opportunities to expand their business. 3. What kind of people should Sergei and Olga look for as business partner to help them to expand their market outside Kyrgyzstan? How should they find a partner they can trust? What can they do to build trust with person? The best way to enter an outside market is looking for someone who has experience in working in that local market. For instant, the local business partners are good choice since they know the language, culture, and behavior of their area. Multinational companies, who is currently working in the local market because they might have experience of a foreigner entering that market. Finding partners they can just is not easy and takes a lot of time. Therefore, they should take business trip to that area, do some market research about it, and start a small contract with some partners. They need time to adapt to new environment and know what their partners benefits from their business. And they can expand their business gradually when they know the partner and the market better. 4. How can Sergei and Olga begin producing fashionable women’s cashmere coats in their factory? Is this feasible or should they give up the dream? Propose an action plan to move their business in this direction. Sergei and Olga could produce the fashionable women’s cashmere coats as their dream. First of all, they should find out target market for the women’s cashmere coats since the market in Kyrgyzstan is too small to develop. The countries like USA, Russian, or Europe are good choice since they have stable politics and provide more information to foreign traders. Secondly, they may want to find some partners, who understand the local markets to help them start with small contracts. They should get familiar to transportation, tax system, special policies, and culture of these markets. After 1 or 2 years working in different markets, they would realize advantages or difficulties of each market. Based on these experience, they could start doing bigger contracts w ith foreign customers.

A Good Man Is Hard To Find - Foreshadowing

A Good Man Is Hard To Find Foreshadowing Essay In A Good Man is Hard to Find, by Flannery OConnor, one is struck by the unexpected violence at the end of the story. However, if one re-reads the story as second time, one will see definite signs of foreshadowing of the ending. In the course of this story, OConnor uses strong imagery to foreshadow the people and the events in this story. There are three significant times she uses this technique. They are the description of the grandmothers dress, the death of the family, and the conversation between the Misfit and the grandmother. The grandmother did not want to go to Florida; she ironically dresses in her Sunday best. She was dressed very nicely with, ;A navy blue dress with a small white dot in the print. Her collars and cuffs were white organdy trimmed with lace and at her neckline she had pinned a purple spray of cloth violets containing a sachet.; (11). A strong foreshadowing imagery can be seen in these lines. Knowing the ending of the story, the grandmothers elaborate dress symbolizes a preparation for her coffin. When a person dies, they are usually dressed in their best outfit, just like the grandmother was dressed in what seemed to be in her Sunday best. A stronger foreshadowing is when OConnor states the reason for the grandmothers beautiful dress, In case of an accident, anyone seeing her dead on the highway would know at once that she was a lady. (11). She herself predicts her own death. Unfortunately, she does not know this yet. Not only does OConnor foreshadow the grandmothers death, she foreshadows the deaths of the rest of the family. The foreshadowing of the familys death is very evident when they ;passed by a cotton field with five or six graves fenced in the middle of it, like a small island.; (12). It is not an accident that the numbers of graves ;five or six; matches the exact number of people in the car. There are 5 people and a baby. Since a baby in not exactly a full person, it is appropriate to say ;five or six.; This foreshadowing image leads into the next one: ;Look at the grave!; the grandmother said, pointing it out. ;That was the old family burying ground. That belonged to the plantation.; ;Wheres the plantation? John Wesley asked. Gone With the Wind, said grandmother. Ha. Ha. (12). The grandmothers reference to the plantation as ;gone with the wind; can be seen as an image foreshadowing and symbolism of the familys state at the end of the story. Their souls are gone with the wind in death. Finally, a foreshadowing image is shown in the Misfit and the grandmothers conversation towards the end. He says ;Does it seem right to you, lady, that one is punished a heap and another aint punished at all? (28). It is known here that the Misfit will kill the grandmother. After all she aint punished; for her crime of hypocrisy, self-centerness, and lying. The Misfit plays God and inflicts punishment where he sees necessary. In conclusion, Flannery OConnor uses strong imagery to foreshadow the ending of A Good Man is Hard to Find. She uses numerous images such as the grandmothers dress, the graveyard, and the conversation with the Misfit to foreshadow the characters future and events. Her foreshadowing images are both strong and difficult, so it does not spoil the end of the story. .

A Proposal on the Negative Implications of Social Networking in the Research Paper

A Proposal on the Negative Implications of Social Networking in the 21st Century - Research Paper Example Ethics and wellbeing of the people in the society is a very important aspect that should be considered by everyone. Societal evils lower the quality of life while presenting individuals to harm. In the earlier days, harm was inflicted on individuals mainly physically, however, with the invention of computer technologies, there has been a paradigm. In the modern context, people can effectively communicate through the social networks and engage in many ways through this virtual mode. Despite the ability to transact positive deeds, malicious individuals, and groups have used social networking as a mode of gaining an advantage over others. Such evils have happened not only been directed to individuals but also to businesses and other organizations, including government agencies.   In the recent past, media reports have indicated that social networks have become one of the main platforms for executing cybercrime.   This is based on the view that social networking is a recent technolog y that is now attracting interest. This forms the basis for developing a research proposal in order to have a study that conclusively draws findings on the negative influence of social media o the society today. In addition, it is also apparent that social networking has not reached its maximum growth, this means that as the networks continue to develop, so are the associated evils; hence, it is likely that so an all networking evils will have a bigger impact in the society if they are not addressed through research.  

Schooling the World Term Paper Example | Topics and Well Written Essays - 1000 words

Schooling the World - Term Paper Example InSchooling the World: The White Man’s Last Burden, the main conflict as depicted in the film is that of traditional education versus contemporary education. Based on the film, it is evident that modern education has had a huge impact on most traditional societies such as Ladakh. To begin with, the fact that most schools offering contemporary education are located in major urban areas, has meant that families have to move near cities in order to secure their children admission to such schools. This has subsequently negatively impacted on their societies. Not only has led to separation of family members, but has also led to change of traditional roles. For instance, one woman in Ladakh village narrates how her children have moved to the nearest urban area in search for modern education for their children. This has in turn led to a change in the traditional duties (Black, 2010). Unlike before where it was males’ responsibility to take of their homes and feed the livestock , the widow is forced to do all these chores. On the same point, traditionalists and opponents of modern schooling also argue that in contrast to the past where education entailed teaching children moral education based on the religious principles of Buddhism, modern education is more focused on teaching children foreign culture and language (Black, 2010). This is regarded as a form of drainage of the traditions and heritage of most societies. As matter of fact, it is deemed as destruction of the viable seeds of tradition, thereby posing the danger of extinction of the traditional cultures. Additionally, the emphasis of modern education on the spirit of competition in school performance has also had a spill-over effect on the lives of most children attending such institutions. Most children are growing to live more self-centered lives, eroding the conventional rules and values of compassion and generosity within the

Difficult problem in your life Essay Example | Topics and Well Written Essays - 500 words

Difficult problem in your life - Essay Example Upon my return, when I started the automobile, I realized that the horrid sound had not gone away, but since I arrived to my destiny with this horrid sound, I thought I could return without any problems. I was truly wrong. The engine was gone due to lack of oil. Not only did I not have an automobile, but I lost my means of transportation to and from school, while also seeking employment. Health issues have also arisen. I have high blood pressure and I am expected to visit the hospital every week for laboratory testing. So here I am, without an automobile for transportation, having health problems, and lacking money. Since that was the scenario, I had to do something very quickly. I appealed to my brother’s kind heart and asked him for economical assistance. He is not better off than I am but knowing about my situation, knowing that I have never asked him for money in the past, and he is in a position to also work on the automobile with a friend of his, he agreed to help me out. This has been a successful solution, in that, my brother partook in helping me out, even taking me to his friend who is a mechanic and he is able to work on the car himself, and obtaining lower costing parts (an engine, to start with). That has been my problem and

Review #4 Essay Example | Topics and Well Written Essays - 250 words

Review #4 - Essay Example The differences in the years B.C and the years A.D are documented in this chapter too. There is a further understanding that the domestication did not happen overnight, but it occurred over a long period with each year bringing something different from the previous years. The topics discussed in the study are of great significance because they document various instances of outstanding stages in the development of Agriculture. There are many comparisons of the differences recorded between the old and the new worlds. The different patterns in prehistory have been documented in this topic with direct reflection on different hypotheses that explain several situations of origins of agriculture, sedimentary communities, as well as domestications of different crops and animals. The topics cover differences in regards to these advancements with specific backgrounds to the measures that have been made in regards to developing more sophisticated tools for agricultural use, as well as the steps in the developments of certain crops like maize, wheat and beans. The studies incorporate the differences in terms of locations with the likes of Southwest Asia, Central America, Mesoamerica and South America. The critique of this text appears to be of a positive review because the text plays the intended role of documenting the various important scenarios in the platform of agricultural development. The text is educative and quite informative especially to an individual with deep interest on the journey that agriculture has travelled to reach what it is

Misogyny in a specific advertisement Essay Example | Topics and Well Written Essays - 750 words

Misogyny in a specific advertisement - Essay Example This "Misogyny in a specific advertisement" essay outlines how misogyny impacts on how we view ourselves and appropriate human actions on the example of Skyye Vodka ad. The image of male domination in this advertisement would be very difficult to argue against. The man standing over the woman is imagery enough to suggest his proper place is in control, on top, in charge. That he is in a business suit suggests power, privilege and further emphasizes the aspect of control. His grip on the neck of the vodka bottle further emphasizes the idea of strength and power. He could do anything with that bottle, from pouring its contents into glasses or directly into her mouth or smash it over her head. His stance, while straddling the woman, also forms a powerful pyramidal negative space between his legs. In art as well as in the subconscious mind, this symbol is recognized as one of the most stable geometric shapes. As such, the man gains this power of the pyramid even while the primitive symbo l for a man, the upward pointing triangle, is emphasized by his socially-acceptable shape. The way in which his jacket falls open further emphasizes this upward-pointing triangle. The idea of male domination isn’t only present in the figure of the man, however. It is also very evident in the position and nature of the woman. Her bronzed and blonde amply endowed figure is reminiscent of the powerful Amazonians of legend, those women that held the supreme power of their own government and were fatal to men.

Analysis of the Macro Environment of Barcelona Football Club Essay

Analysis of the Macro Environment of Barcelona Football Club - Essay Example The main objective of Nunez as the president of the club was to make Barcelona as world-class club. To accomplish this goal, Nunez gave the club stability on the pitch and off the pitch. He had some strict attitudes in himself as the president of the club that intensely affected the image of the club. He held to a stringent policy regarding wages and discipline of the players and the team’s support staffs that actually helped the club to achieve its success. He did not meet demands of players like Maradona, Romario and Ronaldo for the sake of the club. During his era, UEFA Cup Winners’ Cup, Copa del Rey Cup, European Super Cup and many more. His presidency lasted for 22 years as resigned in 2000 after the loss to Real Madrid in the champions League (Hamil, Walters & Watson, 2010, pp. 477-480). PESTEL Analysis of Nunez’s era: The PESTEL analysis discusses the Political factors, Economic factors, Social factors, Technological factors, Environmental factors and Lega l Factors. During the era of Nunez, all these factors led to remarkable changes. This paper discusses on the political and the economic factors. By the start of the era of Nunez, the club and the country came out of the rule of the fascist dictator General Franco (Vincent, 2007, p. 93). He deteriorated the membership model of ownership at the club, reduced club members’ rights and eroded the democracy within the club statutes. Apart from this the degree of government intervention was very low during Nunez’s presidency due to Spain’s transition to democracy (Casals, 2011, p. 112). During his era, there was a lack of transparency regarding the choice of assembly members. During the Nunez era, the emphasis was on the maximization of the club’s economic potential. There was a lack of transparency regarding the accounting procedure, setting and monitoring of the annual budget. The economic situation of the club was not satisfactory during this era. And this le d the club to face almost the problem of bankruptcy at the end of 2003 (Hamil, Walters & Watson, 2010, pp. 477-480) (see Table 1 in the Appendix). The era since Joan La Porta (2003-present): The era of Joan La Porta (2003-2010): Politically and economically weak situation of the FCB was recovered in the era of Joan La Porta. He opposed the former president Nunez and elected as the president of the club on June 15, 2003 (History of FC Barcelona, 2011). And his era lasts to June 30, 2010 (History of FC Barcelona, 2011). He was the most victorious president in terms of prizes won by the club. During his era the arrival of Frank Rijkaard, as the manager of the club and Ronaldinho, as the superstar footballer of the club led to the success of the club. The new style of his management of eventually helped the club to achieve an unbelievable success. His initial era as the president did not start with success. During the starting season of his presidency, the club could not manage to win a single trophy. But he requested players and fans to have faith on the team management and the team ultimately started playing fantastic and fascinating football after the signing of some of the greatest domestic, such as Puyol, Xavi, Valdes, Presas etc. and international footballers, such as Deco, Eto’o, Edmilson etc. His era also underwent from some of criticisms too. Some of the members of his team management thought that he always tried to use his

Diversity of human potential Essay Example for Free

Diversity of human potential Essay Gardner meanwhile developed the concept of multiple intelligences to reflect diversity of what human beings can do. He argued that there aptitudes or different propensities including linguistics, logical-mathematical, musical, bodily-kinesthetic, spatial, interpersonal and intrapersonal intelligences. Learning as a social behavior Bandura’s social learning theory extends the concept of the human potential and noted the role of obtaining competencies through the process of response consequences or observational learning which is essentially imitation or modeling. Modeling according to this theory has four components. Attention, the first component is perception of the significant attributes of a particular behavior. Retention is the next component or coding or committing the behavior to memory. Motor reproduction is the ability to reproduce the modeled behavior. The fourth component is motivational or reinforcements – the necessary push to do set of actions associated with the particular behavior (Bandura, 1975). The three basic psychological concepts outlined above just about cover the domain of psychology and points us to the direction that although there are individual competencies or potentials what happened if these individuals co-exists at particular setting. Bandura posited learning would be impossibility without a social setting even assuming the individual has the potential to learn (Bandura, 1962, , 1975). Accounting for variations. Levels of permanence and variability defines features of the individual like body shape which is relatively permanent than mental recognition or perception which could change quickly which may be internal or influenced by external factors. If modeling is a way of learning accounting for changes through time would be the next step, which is progression. In the case of suicide which has very strong negative association Kolb’s experiential learning cycle model would be helpful and may provide an expanded understanding on how groups or social networks form. This is very important as it has been shown modeling or experiencing losing someone because of suicide is a difficult phase which has proven significant as shown by Bearman and Moody, in terms of suicidal ideation or making the person who committed suicide a model figure (Bearman Moody, 2004). Kolb identified four phases which has interesting interrelationships if taken not as phases but states of mind which is simultaneously being processed. Psychological diversity would be immense because of possibilities of dominance of each of the state of minds. Concrete experience (CE) and abstract conceptualization (AC), for example could be taken as off tangent to each other as experience could be taken as activity which is cyclical in itself but abstraction and conceptualization (AC) is progressive. Human potential may have been the same in the past 300 years but the explosion of knowledge because of science and technology what Bruner may call as powerful amplifiers. Reflective observation (RO) and active experimentation (AE) meanwhile in context of CE and AC could explain possible changes or how situations develop. To tie these all up is talking about the process cognition. As applied to understanding of the complex act of committing suicide, we see that actual experience or feeling the pressure from the environment as continuing until the final act. It is easy to understand what clinical psychologist would point out that suicidal tendencies should be seen as a form of mental illness an irrational behavior wherein the mind or the will has ceased to function. Kolb’s model is posited on the positive or rational thinking and development towards a higher plane of competence and learning as the rule or trend of human behavior. But still we could use Kolb’s and others thinking on human development as operative albeit the outcome is generally considered unacceptable. A lot of cases tends to point out there are risky social situations which may push some people into progressive stages until the act of committing suicide. For this we explore the sociological perspectives.

How Global Capitalism Creates Economic Zones

How Global Capitalism Creates Economic Zones Requirement question: According to dependence theory, how does the global capitalist system create distinctive economic zones in the world? What is the effect on the states? DEPENDENCE THEORY: HOW GLOBAL CAPITALIST SYSTEM CREATE DISTINCTIVE ECONOMIC ZONES AND. A theory according to the Oxford dictionaries it is defined as a system of ideas intended to explain something supposition. (Oxyford Dictionaries) It is a set of interrelated concepts trying to explain a phenomenon. Dependence theory is a body of knowledge/perception composed of different works from different contributors. They have varying definitions of dependence theory. However, there are three common features to these definitions which most dependency-theorist share. The first character is that they view the world in two sets of states, the dominant verses dependent or center verses periphery or metropolitan verses satellite. The center/metropolitan/dominant are the developed, industrialized nations/states/countries in the (OECD) Organization of Economic Co-operation and Development while the periphery/satellite/dependent are the third world countries with low per capital also refered to as the undeveloped or developing nations/states. (Ferraro, 2008) Second, they portray a view that there are external forces such International commodity markets, foreign assistance, and other means that are utilized by the industrialized countries to represent and push for their economic interest abroad. These are usually unfair to the third world countries in one way or the other. (Ferraro, 2008) Thirdly, these theorists indicate that the relations between the dominant states and the dependent nations not only do they intensify unequal patterns between the states but also they reinforce unequal patterns and these relationships are dynamic. Moreover, dependency is a very deep-seated historical process rooted in the internationalization of capitalism. (Ferraro, 2008) The dependency theorists attempts to explain the state of being undeveloped of the third world countries by examining the patterns of interactions arguing that inequality among the nations comes from within or. (Ferraro, 2008) The theorist to this theory holds that international capitalism is the driving force behind dependency relationships the spread of the contemporary world system. (Robbins, 2010) They explain poverty and slow or no know development among other problems faced by third world countries as having their roots or arising from the global capitalist systems. (Angotti 1981, pp. 124-125; Jackson Soensen 2010, p.207). (Ball, 2012) The dependent/periphery states supply raw materials such as minerals, agricultural commodities and labor at a cheap price to the industrialized countries due to the established relationship. The dependent countries also provide market for the manufactured goods, which are sold at high prices, market for the obsolescent technologies and surplus capital for the developed countries. The economy of the dependent states due to this is oriented towards the outside looking up for goods, services, and money to flow from the developed states to them. Unfortunately, for them the allocation of these resources is determined by the industrialized/dominant states and their economic interest (Ferraro, 2008) The spread of the capitalist world system has been accompanied by the creation of distinctive patterns of social relations, ways of viewing the world, patterns of health and disease, relationships to the environment and so on. (Robbins, 2010) How global capitalist system create distinctive economic zones People from the third world countries/dependent/periphery/satellite states are not responsible for the developmental failures of their societies, a view of the neo-Marxist dependency theory. Andre Gunder Frank one of the leading theorists of dependency theory lack of development in these dependent states is because the Developed nations have deliberately undeveloped them. Some of the ways Western nations under develop the third world countries include: Global capitalism- according to Frank argues there exists a global system of capitalism. In this system the developed nations exploits the dependent nations/the periphery. The dependent states are The periphery is kept in a state of dependency and under development kept in an undeveloped state to continue providing cheap raw materials and labour to the developing countries. Historically this relationship of exploitation and dependency occurred through slave trade and colonization and today though aids given by the developed states to the dependency state, multinational companies practices and through international trading systems which the West dominates (revisionworld) Historical exploitation-slavery and colonialism- Frank points out that the trade in slavery earned big profits to both the slave traders and the plantation owners who utilized this source of cheap labour in the18th century. These countries super accumulated capital from this and the capital was invested in industrial revolution and consequently helped kick-start industrial development. According to Paul Harrison, by use of military technology Europe conquered and colonized many states around the world in the 18th century. The colonies were exploited for law materials for their industries, cheap food and cheap labor. Some of the land used traditionally for growing food was turned to production of cash crops for export while in other places new farms were created. (revisionworld) Contemporary exploitation- this is exploitation through international trade. The way world trade is organized today is a legacy of colonialism. Though most of the countries achieved their political independent their economies still is based on exporting cash crop and raw material to the Developed countries and are over-dependent on either one or two products therefore any over production or fall in Western demand of the products can be detrimental to the country’s economy. The Western nations further limit the export earnings of dependency states by setting the prices for many of their products and setting tariffs and quotas, also through taxation of especially manufactured products which limits products entering the First World (revisionworld) Neo colonialism- new forms of colonization is emerging where at the forefront of this Neo-colonialism are the multinational companies (MNCs). These MNCs exploits the dependency states for cheap raw materials, cheap labour and new markets in search for profits. Official aid- official aids have become another source neo-colonialism. These official aids in form of loans, weapons, medicines and human expertise flows from the developed states to the dependent countries. They create a good pathway of exploitation through imposition of requirements to qualify for the business. Most loans to the Third World involve interest. However, economies grow too slowly and long-term development projects such as irrigation schemes, dams, etc. can be slow to generate the predicted income or may fail. In the meantime, the interest builds up and can eventually outstrip the initial loan. (revisionworld) The effects of global capitalism on the states Global capitalism has created a huge economic zone between the third world countries and the developed countries. Some of the major/common effects of global capitalism on the third world states include. Increase in poverty level, hunger and starvation- capitalism has lead to increase in poverty level in third world countries while the first world countries grow richer and richer. Increased conflicts- capitalism has lead to increase in conflicts between ethnic groups, tribes, countries/states/nations over resources. Deprivation- there is also a lot of deprivation where those in the periphery are deprived essential needs. Social injustice and decline in justice- Robert Reich in his work How Capitalism is Killing Democracy observes that democracy is being snuffed out by the pursuit of profit. (Reich, 2007) Inequality-inequality is increasing almost everywhere in the postindustrial capitalist world due to capitalism. Oppression- the trade tariffs and quotas put in place by the third world countries are oppressive and exploitive to the world in today’s world system driven by capitalism. Exploitation- the third world countries are exploited by the developed countries for cheap labour and resources in return for the obsolete technology of the West. (Economics online) Under-development- capitalism and imperialism are perceived as the major cause of the current underdevelopment in Africa among other third world countries. REFERENCES Ball, J. (2012, 11 12). Dependency and World Systems theories explanation of Chinas rapid economic growth. Just Another Journalism Students blog. Retrieved December 21, 2014, from jessicakball.wordpress.com/2012/11/10/the-correlation-between-dependency-and -underdevelopment-and-dependecy-and world-system-theories-explanation-of-chinas-rapid-economic-growth/ Economics online. (n.d.). Dependecy theory. Retrieved December 22, 2014, from Economics Online: www.economicsonline.co.uk/Global_economics/Dependecy_theory.html Ferraro, V. (2008). Dependency Theory: An Introduction. (G. Secondi, Ed.) The Development Economics Reader, 58-64. Retrieved December 21, 2014, from https://www.mtholyoke.edu/acad/intrel/depend.htm Martin, P. (2014, July 25). Capitalism and Global Poverty. Retrieved December 22, 2014, from Global Poverty: www.globalresearch.ca/capitalism-and-global-poverty-two bilion-poor-one-billion-hungry/5393262 Muller, J. Z. (2013, March/April). Capitalism and Inequality. Retrieved December 22, 2014, from Foreign Affairs: m.foreignaffairs.com/articles/138844/jerry-z-muller/capitalism-and-inequality Oxyford Dictionaries. (n.d.). theory. Retrieved December 21, 2014, from Oxford Dictionaries : www.oxforddictionaries.com/defination/english/theory Reich, R. B. (2007, September 05). Robert Reich: How Capitalism is Killing Democracy. Retrieved December 22, 2014, from Economists View: economistsview.typepad.com/economistsview/2007/09/robert-reich-ho.html revisionworld. (n.d.). Dependecy theory. Retrieved December 22, 2014, from revisionworld: revisionworld.com/a2-level-level-revision/sociology/world sociology/sociological expanation-development-under- developments/dependancy theory Robbins, R. H. (2010). Global Problems and the Culture of capitalism (5th ed.). New York: Allyn Bacon Publishing, inc. Retrieved December 21, 2014, from faculty.plattaburgh.edu/richard.robbins/legacy/book_plan.html The Socialist Party of Great Britain. (n.d.). Africa and the reality of capitalism. Retrieved December 22, 2014, from The Socialist Party of Great Britain: www.worldsocialism.org/spgb/education/depth-article/global-economy/africa-and-reality-capitalism