Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
independent
B
reliant
C
competitive
D
self-sufficient
Understanding the Answer
Let's break down why this is correct
Answer
According to Dependency Theory, poorer nations are often economically dependent on wealthier nations because of unfair trade practices that favor the rich. This means that wealthier countries often take advantage of the resources and labor of poorer countries, leaving them with little benefit from their own natural wealth. For example, a country rich in minerals may sell those minerals to a wealthy nation at a low price, while the wealthy nation processes them and sells the finished products back at a much higher price. This cycle keeps the poorer nation reliant on the wealthier one for income and development. As a result, the poorer nation struggles to grow its economy and improve the living conditions of its people.
Detailed Explanation
Poorer nations depend on wealthier nations for resources and trade. Other options are incorrect because Some might think poorer nations can stand alone; It's easy to think poorer nations compete with wealthier ones.
Key Concepts
Dependency Theory
Global Trade
Economic Inequality
Topic
Dependency Theory and Global Trade
Difficulty
easy level question
Cognitive Level
understand
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