Dependency theory postulates that even as developing countries industrialize, much of their wealth continues to be funnelled to developed nations. What is the most significant mechanism for this transfer?
A) Imports - because their own industry is underdeveloped, poor countries must import a disproportionate amount of goods.
B) Depressed resource prices - because many of these countries export raw materials, their economic fate is determined primarily in markets dominated by wealthy nations.
C) Debt - developing countries have to make large interest payments to the wealthy countries that have given them loans.
D) Education - in order to industrialize, developing nations require a skilled workforce that must be educated abroad at great expense.
Correct Answer:
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