Exam 18: The World-System Since 1945: Another Wave of Globalization, Hegemony, and Revolutions

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Wallerstein's notion of stages of hegemony is based on the idea that different countries or regions have comparative advantages in the production of certain types of goods and services, which in turn shapes their economic and political power on the global stage. According to Wallerstein, there are three stages of hegemony: the first stage is characterized by the dominance of a core region in the production of consumer goods, the second stage is marked by the dominance of a core region in the production of capital goods, and the third stage is defined by the dominance of a core region in the production of financial services.

In the case of the United States, its trajectory fits with Wallerstein's notion of stages of hegemony in several ways. During the first stage, the U.S. was indeed a dominant producer of consumer goods, particularly in the post-World War II era when American manufacturing and consumer culture were at their peak. This dominance in consumer goods production contributed to the U.S.'s economic and political power during this time.

In the second stage, the U.S. transitioned to being a dominant producer of capital goods, particularly in the post-industrial era when American technology and innovation became a driving force in the global economy. This shift in comparative advantage further solidified the U.S.'s hegemonic position, as it was able to leverage its technological prowess to maintain economic and political influence.

Finally, in the third stage, the U.S. has become a dominant producer of financial services, with Wall Street and the American financial system playing a central role in the global economy. This dominance in financial services has further cemented the U.S.'s hegemonic position, as it has been able to use its financial power to shape global economic policies and institutions.

Overall, the U.S.'s trajectory aligns with Wallerstein's notion of stages of hegemony based on comparative advantages in the production of consumer goods, capital goods, and financial services, as the country has transitioned through each stage and maintained its global influence through its dominance in these key economic sectors.