📚 Learning Guide
Dependency Theory and Global Trade
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Order the following stages in the Dependency Theory framework that describes the relationship between wealthy and poorer nations: A) Wealthy nations exploit poorer nations through trade practices B) Poor nations become increasingly dependent on foreign aid and investment C) Economic growth in poorer nations is stunted due to a lack of resources D) Wealthy nations maintain their economic dominance over poorer nations

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Choose the Best Answer

A

A→B→C→D

B

B→A→D→C

C

D→C→B→A

D

C→D→A→B

Understanding the Answer

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Answer

In the Dependency Theory framework, we can order the stages as follows: A) Wealthy nations exploit poorer nations through trade practices, which sets the stage for the relationship. This leads to C) Economic growth in poorer nations being stunted due to a lack of resources, as they are often left with little to invest in their own development. Consequently, B) Poor nations become increasingly dependent on foreign aid and investment, as they struggle to grow independently. Finally, this cycle allows D) Wealthy nations to maintain their economic dominance over poorer nations, as they continue to benefit from the unequal relationship. For example, a poorer country may rely on exporting raw materials to a wealthy country, which profits while the poorer nation remains underdeveloped.

Detailed Explanation

Wealthy nations first exploit poorer nations through unfair trade. Other options are incorrect because This order suggests that dependence comes before exploitation; This order implies that dominance happens before economic issues.

Key Concepts

Dependency Theory
Global Trade
Topic

Dependency Theory and Global Trade

Difficulty

medium level question

Cognitive Level

understand

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