📚 Learning Guide
Dependency Theory and Global Trade
easy

What is the primary reason poorer countries often remain economically dependent on wealthier nations, leading to ongoing cycles of debt and poverty?

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

They lack the industrial capacity and resources for self-sustained growth.

B

They have a higher population density that requires more imports.

C

They often have better access to technology than wealthier nations.

D

They are typically located in regions with abundant natural resources.

Understanding the Answer

Let's break down why this is correct

Answer

The primary reason poorer countries often remain economically dependent on wealthier nations is that they lack the resources and infrastructure needed to develop their own industries. Wealthy countries often control important markets and technology, making it hard for poorer nations to compete. For example, if a poor country relies on exporting raw materials, it might sell them at low prices to rich countries, which then process and sell the finished products for much higher prices. This means the poorer country misses out on the profits that come from manufacturing and innovation. As a result, they end up borrowing money to grow their economy, but this debt can trap them in a cycle of poverty and dependency.

Detailed Explanation

Poorer countries often do not have the factories or resources needed to grow their own economies. Other options are incorrect because Some might think that having more people means needing more imports; It's a common belief that poorer countries have better technology.

Key Concepts

Dependency Theory
Global Trade
Topic

Dependency Theory and Global Trade

Difficulty

easy 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.