One of the main economic features of imperialism is the export of capital . Export of goods was typical of pre – monopoly capitalism when free competition had undivided sway . Under monopoly capitalism foreign trade continues to expand , but the export of capital acquires exceptional importance . During the period of monopoly capitalism the export of capital becomes the main instrument of systematic exploitation of the greater part of the world by a handful of eco nomically developed capitalist countries . Vast amounts of ” surplus capital ” arise in a number of capitalist countries . Under imperialism the domination of monopolies with their enormous concentration of capital , and the development of joint – stock companies and banks which concentrate vast amounts of the population’s free money give rise to ” sur plus capital ” in a number of capitalist countries . This ” sur plus capital ” is conditional and relative . The living standards of the masses of people under capitalism remain comparatively low , while agriculture , which greatly lags behind industry , is very much in need of money for its develop ment . But monopoly capitalism cannot use the ” surplus capi tal ” to raise the living standards of the people because that would reduce the profits of the monopolists . In pursuit of higher profits the monopolies export capital . In the beginning of the 20th century capital was exported mainly to the backward , colonial and dependent countries where the scarcity of capital , low land prices , low wages and cheap raw materials ensured fabulously high profits . Capital is still being exported to underdeveloped countries . Between 1946 and 1960 the U.S.A. withdrew from Latin American countries 8.800 million dollars of profits , whereas the new American direct private capital investments in Latin America during the same period amounted only to 4,500 million dollars . Export of capital from one highly – developed capitalist country to another has been rapidly developing in recent years be cause of intensified competition and the difference in wages . Capital is exported in two basic forms : firstly , as productive capital consisting in investments in industry , agriculture , transport , etc. , and , secondly , as loan capital , i.e. , loans to governments and private credit . Despite the different forms of export of capital its exporters pursue the same aim , namely , to obtain high monopoly profits . Both private and state capital may be exported . In the beginning of the 20th century the export of capital was almost entirely private business . Today state capital amounts to about half the total export of capital and continues to increase because private capital prefers to take no risks in connection with the increasing danger of nationalisation in the liberated countries . Imperialist states use export of capital to extend the old and seize new sources of raw materials . markets and spheres of capital investments , and to effect eco nomic , political and military strategic expansion .