Understanding the relationship between the core and peripheral countries is crucial in analyzing the world systems theory. The relationship is highly credited for the rise of the Asian countries in the contemporary context. The capitalistic core countries largely depend on the peripheral countries on numerous occasions to drive their Economy and market.
The capitalistic core countries rely on the peripheral for cheap labor and natural resources that dive their Economy. While this often comes with the cost of degradation of periphery countries’ culture, it brings jobs to these countries. The jobs offer wages and salaries to the periphery country citizens and better working conditions, thus improving their living standards. As a result, it boosts the peripheral countries’ Economy as candid through Asian countries such as China and South Korea.
By obtaining cheap labor and natural resources, the capitalistic core countries, in return, bring foreign currencies through foreign investments to the Peripheral countries. The foreign investments enrich the economies of the peripheral counties and thus enhancing their economic performance. This move is highly evident in China. Capitalistic core counties such as the United States and the United Kingdom have installed multibillion factories such as Nike production plants and thus enhance the Chinese Economy as while the Asian Economy.
The Peripheral counties also depend on the capitalistic core countries for technological innovations. For example, most peripheral countries such as Korea and India in Asia devices run on Android, an American technology. These technological innovations propel these countries’ economic position in the world economic order. Therefore, the approach significantly influences the world order in the world system of theory.
The capitalistic core countries have more developed social structures and better economies as compared to the periphery countries. Therefore, peripheral countries such as South Korea and China in Asia try to emulate the capitalistic countries’ economies and social structure. As a result, the capitalistic core counties’ relation with the peripheral countries has significantly contributed to the rise of peripheral countries, especially in China.
Conclusively, while the relationship between the capitalistic core countries and the Peripheral counties is explicit of various drawbacks, it has led to the peripheral countries’ development. This is candid through the Asian case in countries such as China and South Korea. Therefore, the relationship is essential in analyzing the changes in today’s world order in the world system theory especially in the rise of Asia