📚 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 countries, often at their expense. This theory suggests that global trade is not just about exchanging goods but also about power dynamics where rich nations control the markets and dictate terms. For example, a large corporation in a developed country might pay very low wages to workers in a developing nation while profiting immensely from the products they create. As a result, the poorer country remains dependent on the wealthier one, unable to develop its economy fully. This cycle of exploitation keeps the poorer countries in a state of underdevelopment, reinforcing economic inequalities on a global scale.

Detailed Explanation

Wealthy countries often take resources from poorer countries. Other options are incorrect because This idea suggests that every country has 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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