📚 Learning Guide
Dependency Theory and Global Trade
medium

Which of the following statements accurately reflect the principles of Dependency Theory in relation to global trade? Select all that apply.

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

Wealthy nations often exploit poorer nations through unfavorable trade agreements.

B

Dependency Theory suggests that all nations are equally capable of achieving economic self-sufficiency.

C

Poorer nations are typically reliant on exports of raw materials to wealthier nations.

D

Economic growth in poorer countries can lead to reduced dependency on wealthy nations.

E

The semi-periphery countries play a significant role in bridging the core and periphery economies.

Understanding the Answer

Let's break down why this is correct

Answer

Dependency Theory is an idea that explains how some countries are rich while others are poor, mainly because of their relationships in global trade. It suggests that wealthy countries often take resources and labor from poorer countries, making it hard for those poorer countries to grow and develop. For example, a rich country might buy raw materials from a poorer country but sell back finished products at a much higher price, keeping the poorer country dependent on them. This creates a cycle where the poorer country can't escape its economic situation. Therefore, statements that show how global trade can keep poorer countries reliant on wealthier ones would accurately reflect the principles of Dependency Theory.

Detailed Explanation

Dependency Theory explains how poorer nations rely on wealthier ones, but none of the statements reflect this accurately. Other options are incorrect because This statement suggests that wealthy nations exploit poorer ones, but it doesn't capture the full picture of dependency; This implies all nations can be self-sufficient, which isn't true.

Key Concepts

Dependency Theory
Global Trade
Economic Inequality
Topic

Dependency Theory and Global Trade

Difficulty

medium 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.