📚 Learning Guide
Dependency Theory and Global Trade
medium

In the context of Dependency Theory, how does the core-periphery model illustrate economic dependency between nations?

Master this concept with our detailed explanation and step-by-step learning approach

Learning Path
Learning Path

Question & Answer
1
Understand Question
2
Review Options
3
Learn Explanation
4
Explore Topic

Choose the Best Answer

A

The core countries exploit resources from peripheral countries, leading to unequal economic growth.

B

Peripheral countries provide equal resources to core countries, resulting in balanced trade.

C

Core countries are economically dependent on peripheral countries for raw materials only.

D

All countries benefit equally from trade regardless of their position in the core-periphery model.

Understanding the Answer

Let's break down why this is correct

Answer

Dependency Theory suggests that some countries, often called "core" nations, are economically strong and dominate global trade, while "periphery" nations are weaker and depend on the core for resources and markets. The core-periphery model shows how wealthier nations exploit poorer ones for raw materials and cheap labor, which keeps the periphery in a cycle of dependency. For example, a rich country might buy coffee from a poor country, process it, and sell it back at a much higher price, meaning the poorer country earns very little from its resources. This relationship can prevent the periphery from developing its own industries, making it hard for them to grow economically. Overall, the core-periphery model illustrates how unequal relationships in trade can maintain economic dependency and hinder progress in developing nations.

Detailed Explanation

Core countries take resources from peripheral countries. Other options are incorrect because This option suggests that trade is fair and balanced; This answer implies that core countries only need raw materials.

Key Concepts

core-periphery model
economic dependency
Topic

Dependency Theory and Global Trade

Difficulty

medium level question

Cognitive Level

understand

Ready to Master More Topics?

Join thousands of students using Seekh's interactive learning platform to excel in their studies with personalized practice and detailed explanations.