Asked by Lizzie Gonzalez on Apr 24, 2024
Verified
Katherine is opposed to foreign investment and free trade in poor countries. She believes that it does nothing to help them and instead creates even higher levels of poverty and suffering. What theory is her analysis consistent with?
A) modernization theory
B) world systems theory
C) dependency theory
D) new international division of labour theory
Dependency Theory
A social science theory proposing that economic development in a global context is structured by the exploitation and dependency relationships between wealthy, developed countries and poorer, underdeveloped nations.
Foreign Investment
The investment by individuals, businesses, or governments in assets or enterprises within a foreign country to gain a return.
- Understand the theories explaining international economic relations, such as modernization theory, dependency theory, and world-systems theory.
- Analyze the role of foreign investment, trade policies, and globalization on developing economies.
Verified Answer
SM
Samuel Moreland8 days ago
Final Answer :
C
Explanation :
Katherine's analysis is consistent with dependency theory, which argues that the wealth of rich nations is based on the poverty of poor nations and that these poor nations are kept in a state of dependency by the existing global economic system. This theory suggests that foreign investment and free trade can exacerbate poverty and inequality in developing countries by making them overly dependent on the economies of wealthier nations.
Learning Objectives
- Understand the theories explaining international economic relations, such as modernization theory, dependency theory, and world-systems theory.
- Analyze the role of foreign investment, trade policies, and globalization on developing economies.