dependency theory

Question 1

who put forward the dependency theory

Answer 1

frank

Question 2

what did the dependency theory split the world into

Answer 2

developed core countries and underdeveloped peripheral countries

Question 3

what does the relationship between core and periphery maintain and increase

Answer 3

the power of core countries whilst peripheral countries remain weak

Question 4

what did TNC investment in developing countries lead to (dependency theory)

Answer 4

-exploitation of skilled labour and cheap raw materials
-creating international debt

Question 5

what ensured that peripheral countries were exploited by core countries

Answer 5

periphery countries didn’t have the resources, technical skills or institutions that could help resist exploitation

Question 6

what may have helped the USA benefit to the detriment of developing countries

Answer 6

its influence over the WTO and IMF

Question 7

examples of nations breaking away from dependency

Answer 7

the BRICS development of NDP and CRA

Question 8

what is the NDP

Answer 8

-New development plan
-finance infrastructure and sustainable development projects in emerging economies

Question 9

whats the CRA

Answer 9

-Contingent Reserve Arrangement
-protect BRICS countries from global liquidity pressures (money pressures)

Question 10

what moves to the core

Answer 10

-low value commodity exports

Question 11

what moves to the periphery

Answer 11

core high value goods

Question 12

what is removed from peripheral developing countries

Answer 12

-brain drain
-raw materials
-political support
-debt repayment and purchase payments

Question 13

what is goes to peripheral developing countries

Answer 13

-manufactured goods
-aid
-polluting industry
-political and economic ideas

Question 14

what are core developed countries

Answer 14

any nation of economic power

Question 15

what does the dependency theory propose/ main point

Answer 15

-resources flow from periphery of poor and underdeveloped states to the core of wealthy states
-enriches wealthy and expense of poor

Question 16

what is the strength of the dependency theory

Answer 16

exposes global inequalities

Question 17

anomalies in the dependency theory

Answer 17

-Japan and USA (did not have colonial network) still prospered
-some positive links between core and periphery e.g. Fair trade

Question 18

what links to the reason why dependency could occur

Answer 18

earlier direct colonial control
-arguing for neocolonialism

Question 20

what traps the periphery

Answer 20

-exporting goods

Question 21

what model links why the periphery is trapped

Answer 21

the prebish-singer theory

Question 22

what does the prebisch- singer theory do

Answer 22

-prices of primary commodities (raw materials, agricultural products) tend to decline relative to the prices of manufactured goods over the long term
-countries need to export more raw materials to import the same amount of manufactured goods.