📚 Learning Guide
Dependency Theory and Global Trade
easy

Which of the following best describes the concept of economic exploitation as it relates to Dependency Theory in global trade?

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Choose the Best Answer

A

Wealthy nations benefit from the resources of poorer nations, leading to ongoing inequality.

B

All nations have equal access to trade and resources.

C

Economic development is universally beneficial for all countries.

D

Trade agreements always favor developing countries.

Understanding the Answer

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Answer

Economic exploitation, in the context of Dependency Theory, refers to how wealthier countries benefit from the resources and labor of poorer nations, often at their expense. This theory suggests that global trade is not fair; instead, it creates a system where rich countries dominate and control the economic activities of developing countries. For example, a large corporation in a wealthy country might pay low wages to workers in a poorer country to produce goods, while keeping most of the profits for itself. This means that despite the hard work of the local workers, they remain trapped in poverty, and the wealth created does not help their communities grow. Thus, Dependency Theory highlights the unfair relationship in global trade, where exploitation keeps poorer nations dependent and unable to thrive independently.

Detailed Explanation

Wealthy countries often take resources from poorer countries. Other options are incorrect because This idea suggests that all countries have the same chances in trade; This option implies that development helps everyone equally.

Key Concepts

economic exploitation
Topic

Dependency Theory and Global Trade

Difficulty

easy level question

Cognitive Level

understand

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