The dependencia theory holds that the terms for a foreign investor's operations depend on how much the investor and the host country need each other's assets.

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Dependency theory primarily argues that economic disparities between countries are rooted in the exploitation of poorer countries by wealthier ones through historical colonialism and modern economic and trade policies, rather than focusing on mutual needs and terms of investment between a foreign investor and a host country.

The Dependencia Theory Holds That the Terms for a Foreign