Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
A wealthy country providing technological aid to a developing country to enhance its industrial capacity
B
A developing country exporting raw materials to a wealthy nation while importing finished goods
C
A middle-income country achieving self-sustained growth through local entrepreneurship
D
A wealthy nation investing in a developing country's infrastructure to reduce its dependency
Understanding the Answer
Let's break down why this is correct
Answer
Dependency Theory suggests that poorer countries depend on wealthier countries for resources and economic growth, often leading to unequal relationships. For example, imagine a small country that produces coffee but relies on a large multinational company to buy its coffee beans. This small country may not have the power to set fair prices or invest in its own economy because it is dependent on the wealth and decisions of the multinational company. As a result, while the company profits, the small country remains in a cycle of poverty, illustrating how dependency can hinder development. This shows that global trade can create imbalances where some countries thrive while others struggle due to their reliance on richer nations.
Detailed Explanation
Dependency Theory explains how poorer countries rely on richer ones. Other options are incorrect because Some might think that giving aid helps a country grow; It's easy to believe that a middle-income country can grow on its own.
Key Concepts
Dependency Theory
Global Trade
Topic
Dependency Theory and Global Trade
Difficulty
easy level question
Cognitive Level
understand
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