Asked by Lizzie Gonzalez on Apr 24, 2024
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.
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.