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Dependency Theory and Global Trade
easy

In the context of Dependency Theory, which of the following best describes the core-periphery model?

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Choose the Best Answer

A

The core countries are economically dependent on peripheral countries for resources.

B

Peripheral countries provide raw materials to core countries and are economically disadvantaged.

C

Core countries rely on each other for technological advancements.

D

Peripheral countries have a diversified economy similar to core countries.

Understanding the Answer

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Answer

The core-periphery model in Dependency Theory explains how some countries, called core countries, are more developed and economically powerful than others, known as peripheral countries. The core countries often exploit the resources and labor of peripheral countries, leading to a system where wealth and power are concentrated in the core. This relationship creates a dependency, where peripheral countries rely on core countries for trade and development, which can hinder their own growth. For example, if a wealthy country manufactures electronics, it may source cheap materials from a poorer country, leaving the poorer country dependent on the wealthier one for jobs and technology. In this way, the core-periphery model illustrates the unequal economic relationships that shape global trade.

Detailed Explanation

Peripheral countries are often poorer and supply raw materials to richer core countries. Other options are incorrect because This option suggests core countries need peripheral countries for resources, which is the opposite of reality; This option implies core countries depend on each other for technology.

Key Concepts

core-periphery model
Topic

Dependency Theory and Global Trade

Difficulty

easy level question

Cognitive Level

understand

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