What are the predictions of dependency theory, Business Economics

Assignment Help:

What are the predictions of dependency theory?

The predictions of dependency theory:

• DCs exploit LDCs (Less Developed Countries) by extracting their surplus value. Surplus value turns into the difference among the values of what an LDC produces and what that is paid to produce which by a DC.

• To prevent exploitation, underdeveloped countries should gain political, social and economic independence through the developed countries through cutting of economic ties in between trade and investment along with the developed world and becoming self sufficient as like adopt an import-substitution strategy (ISS)

• Dominant Developed Countries are so powerful which they can make sure the rules of the game - when set out by WTO, World Bank and IMF which work into their own self-interest.


Related Discussions:- What are the predictions of dependency theory

Household sector, The prevention of main swings in economic activity can be...

The prevention of main swings in economic activity can be handled most simply by the household sector. Explain why?

Microevironment factors, what microevrionmental factors have affected Sony'...

what microevrionmental factors have affected Sony''s performance since 2000

What are the disadvantages of informal economy, What are the disadvantages ...

What are the disadvantages of informal economy? Disadvantages of the informal sector are as illustrated below: • don’t pay direct taxes; • Can produce important pollutio

Laws of returns to scale, is indian companies running a risk by not giving ...

is indian companies running a risk by not giving attention to cost cutting?

The economic cost of a project, Advanced Technology, Inc., (ATI) is evaluat...

Advanced Technology, Inc., (ATI) is evaluating a contract proposal calling for it to build and test bearings using a newly patented surface configuration. ATI would receive $1.4 mi

What is the capital-output ratio, What is the capital-output ratio? ...

What is the capital-output ratio? Capital-output ratio: This ratio (k) is the amount of capital required to produce £1 of Gross Domestic Product generated, every year.

Explain the 3 different ways of calculating national income, QUESTION (...

QUESTION (a) Explain the 3 different ways of calculating national income. (b) Does the National Income figure accurately reflect the living standard of a population? Discuss

Colonial background countries of the development process, What are colonial...

What are colonial background countries of the development process? A colony is a country controlled by other. Various European countries had extensive empires as: • Latin

What are the critics of advocates of world bank, What are the critics of ad...

What are the critics of advocates of World Bank in promotion of development? Critics of the World Bank argue: • A one-size-fits all strategy which does not take account

Instituition, Define institutions in the context of business strategy, and ...

Define institutions in the context of business strategy, and explain the role of institutions when considering entering a foreign market. Explain the role of culture in how these i

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd