Expansion Of Economic Globalization And Intangible Capital

This article purports an in-depth research into the function of the large amount of intangible capitals welling up in the third economic globalization being guided theoretically by Marxian labor axiology. It analyzes the differences and similarities between the third economic globalization and previous two, concludes that the essence of economic globalization is global capital expansion, and that intangible capital plays key role in the third time and becomes the dominant force in capital expansion. On the basis of this judgment, this article progresses to analyze the characteristics, modes and functions of intangible capital expansion and detect its inherent law, and then puts forward the kind of correct attitude and measures the developing country should adopt in face of intangible capital expansion.History has witnessed three times of economic globalization. The first time fell at the end of 18th century and beginning of 19th century and marked by steam engine and spinning machine. With the great development in social productivity ever known in history, large amount of low-cost and superfluous industrial products flooded all over the world after breaking the barriers of all nations. The second time arrived at the end of 19th. The invention electric system and development of heavy industry pushed to a new stage the industrialization based on great machinery industry, the world market and international labor division. The first two economic globalizations are in fact two grand-scale global capital expansions but with tangible capital as the major force, as the capital owner had not realized the might of intangible capital. After the Second World War, followed the third technology and industry revolution marked by electronic computer, laser, biotechnology and other advanced technology, surpassing the previous two industry revolution either in scope or in depth. As a result, economic globalization is pushed to a completely new stage, and global capital expansion exerts itself for the third time, but with a large amount of intangible capitals welling up. With greater development and perfection of rules and regulations concerning global intellectual property protection, the capital owners have begun to realize the super profitability of intangible capital. Driven by the desire for high profits, capital owners make intangible capital preferred tool in capital expansion. Consequently, intangible capital becomes the dominant force at the third time of capital expansion.The dominant role of intangible capital at the third time of capital expansion can be explained by its super profitability, which two factors account for. One is its high surplus value ratio—the capital owner can gain more surplus value from the author of intangible capital; another is its monopoly whereby the capital owner can set higher monopoly price and hereby gain high monopoly profits from the consumers. After the accumulation of the excessive profits brought by intangible capital, the capital owner will necessarily follow the nature of capital and seek its lasting value addition and expansion. Therefore, intangible capital, like its tangible counterpart, has value-adding and expanding nature. Moreover, its expansion has unified rules of game—the system of the world intellectual property rights protection, and hence has its legality. These unified rules of game are greatly favorable to the developed countries, for 80% of intangible capitals are in their hands. Furthermore, most of the rules of game are set under the presiding of developed countries. Faced with these unified rules of game, the developing countries have no choice but to abide by. Objectively speaking, this is obviously unfair to the developing countries.Capital expansion goes all directions and goes wherever there are profits. However, the amount and quality of intangible capitals of developing countries is no match for those of developed counties. Thus, the developing countries hold an extremely disadvantageous position in intangible capital expansion. Since the developed...