Hegemony

It is a term derived from the Greek language word hegemon which mean: leader or guide. Today the term is used when an entity or person holds a dominant advantage over others. This entity is called then hegemony.

This mainly we use in relation to the nation-state, having the greatest influence on the economic, political, military, cultural and control over other states. Hegemony on the one hand, it refers to global policy (one state decide on specified world order) and, on the other hand, tells us about the status of the structure of the international matters.

The basis of particular state hegemony (according to. I. Wallerstein) is the dominance of the economy (industry, trade and finance). Having an advantage in this area hegemony guarantees relatively strong and unassailable position, putting other allies in the role of client states.

However a very important issue for the hegemony is military advantage. Hegemony takes its position mainly by means of force and efficient economy allows him to keep it.

Impact on markets and customers

Hegemony can have a significant impact on markets and customers. When a country or group holds a dominant position in a market, they have more control over prices, production, and distribution, which can lead to a lack of competition and higher prices for consumers. Additionally, a hegemonic power may use its influence to shape the market in its favor, such as by creating trade barriers or subsidies for domestic companies.

On the other hand, hegemony can also bring stability and predictability to a market, which can be beneficial for businesses and consumers. The hegemonic power may also provide a level of protection for smaller market players, and promote innovation and development in the market.

Overall, the impact of hegemony on markets and customers can be both positive and negative, and depends on the actions and policies of the hegemonic power.

Examples

• Sparta attained hegemony in the Peloponnesian War, result was 30-year hegemony in Greece.
• Modern example of hegemony are United States of America. In spite of dwindling influence, USA still have leading position on the military and economic plane.

See also:

• Competences of leader

Hegemony — recommended articles

Closed economy — Emerging market economy — International division of labor — External environment — Globalization — Centrally planned economy — Political factors affecting business — Homogenization of culture — Domestic market

References

• Keohane, R. O. (2005). After hegemony: Cooperation and discord in the world political economy. Princeton University Press.