Core Countries - Main Functions

Main Functions

The main function of the core countries is to command and financially benefit from the world system better than the rest of the world. Core countries could also be viewed as the capitalist class while the periphery countries could be viewed as a disordered working class. In a capitalism-driven market, core countries exchange goods with the poor nations at an unequal rate greatly in favor of the core countries.

The periphery countries’ purpose is to provide agricultural and natural resources along with the lower division of labor for larger corporations of semi-periphery and core countries. As a result of the lower priced division of labor and natural resources available, the core nations’ companies buy these products for a relatively low cost and then sell them for much higher. The periphery countries only receive low amounts of money for what they sell and must pay higher prices for anything they buy from outside their own region. Because of this continuous order, periphery countries can never earn enough to cover the costs of their imports while setting aside money to invest in better technologies. Core countries support this pattern by giving loans to the poor regions for specific investments in a raw material or type of agriculture, rather than help such regions establish themselves and balance out the world market.