In global economic terms, what role do core nations typically play?

Core nations play a crucial role in the global economic system by having a high degree of control over capital. These nations are often characterized by advanced technological infrastructure, high levels of productivity, and a significant concentration of wealth. Their economic dominance allows them to set prices, dictate terms of trade, and influence economic policies on a global scale. As a result, core nations are typically involved in activities that generate high value-added goods and services, as opposed to merely exporting raw materials or relying solely on agricultural sectors.

This control over capital enables core nations to invest in research and development, maintain competitive advantages, and shape global economic alliances and policies. They serve as hubs for financial institutions and multinational corporations, further emphasizing their strategic advantage and power in the international market. In contrast, nations that focus on producing raw resources, agricultural exports, or local trade are often categorized as peripheral or semi-peripheral nations within the world-system theory, highlighting the disparity in power and wealth distribution between core nations and others.