How does Dependency Theory explain the persistence of inequality in global trade relationships between developed and developing nations?

Dependency Theory suggests that the global trade relationships between developed and developing nations create a cycle of inequality. This theory argues that developing countries often rely on exporting raw materials to developed countries, while the latter export finished goods back to them. This unequal exchange keeps developing nations dependent and limits their ability to grow economically because they do not get fair prices for their resources. For example, a country rich in natural resources might sell its oil at low prices, but when it buys refined products, it pays much more, leading to a loss in wealth. As a result, this dependency prevents developing nations from advancing and perpetuates their economic struggles.