2.2.1 Classical Imperialism Theory

(LUXEMBURG (15), LENIN 13)
The desire for profit maximization causes production beyond the needs of the internal market and leads to the establishment of new markets in underdeveloped areas. Here, the autochthon production and markets are being destroyed and, thus, unemployment is exported to underdeveloped areas. Lenin in addition assumed a decrease of investment possibilities and, therefore, of profit rate in industrialized countries. Thus, capital is being exported in order to maximize profits. In the underdeveloped areas, this capital is invested, not according to the needs of these countries, but according to the interests of industrial countries. The profit is transferred to the industrial countries whose development is based on the exploitation of underdevelopment areas.