📚 Learning Guide
Dependency Theory and Global Trade
easy

According to Dependency Theory, poorer nations are often economically __________ on wealthier nations due to exploitative trade practices.

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Learning Path
Learning Path

Question & Answer
1
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2
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3
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4
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Choose 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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