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

Question

Quizplus · Accepted Answer

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.

Katherine Is Opposed to Foreign Investment and Free Trade in Poor