In the lecture lesson, James Gilley is teaching the students more about Worlds System Theory which is considered as a macrosociological thought that mainly explains the different world economy dynamics within a social system. However, this theory is important because it focuses on the inter-regional and the dynamic transnational labor division. In this regard, the world system is divided into semi-periphery nations and core nations. This makes it easy to identify which particular nations have higher labor skills and the ones with lower labor skills.
The kind of labor skills which a nation possesses greatly determines its dominance levels in the market. This is because higher skilled labor means that the kind of work that they will be doing is of high quality. If this is accompanied by technological factors, the level of innovation in the nation will become high which in the end improves the performance level of the company. These types of nations are always leveled high in the world economy with high capitalism and great business margin.
However, the contrary is seen or experienced in nations with low –skill labor or workforce. This is because the intensity of their production is low and in most cases these kinds of labor exists in underdeveloped nations where technology is not improvised like the developed nations. In the end, it is the efforts that the labor force puts in regards to performance that would determine the capital-intensive level of production of such nations.
Nevertheless, according to lecturer Gilley, the world system sets boundaries and structural system with rules of legitimation. There are several boundaries and structures that acts as conflicting forces bringing about tension in each group preventing nations from achieving full advantage. In the world system, life is more self-contained while the development dynamics are largely internal. It means that the main focus is on the world economy which is more internal and self-contained in nations.
Nonetheless, this kind of approach has resulted on class struggles and increased competition on nations. This in turn brings about social conflicts especially as the sense of conflicts and emotions increases among the social classes in the community. The social conflict is more intense in developed nations compared to developing nations where there are only few individuals with high level of wealth. Gilley views the capitalist world economy to be more detrimental to the world population. This is because the world today is in the age of transition thus these kinds of configurations cannot be used in any way to determine any forms of future advancement between the various classes in different nations.
The world system needs to be built upon fundamental factors such as the level of dependency. This is because with the great difference between social classes, the world needs to accept that there exists inequality in the market. It means that the poor nations end up depending on the core nations. It has been identified that the dependency level has not contributed to the core nations taking advantage or exploiting the workers in all the capitalist zones. The main reason this is not happening is because capitalism is more organized within the transnational labor division compared to international division of labor. The core nations understands that the dependency levels among the poor nations is based on their peripheral position in the world which prevents them from acquiring skilled labor which can help boost their performance.