Business I / Global Inequality
Practice question · Select all that apply

Which observations does dependency theory struggle to explain?

Hints
  1. This theory predicts the periphery stays locked out.
  2. Cases of successful escape are therefore its hardest evidence.
Show the answer
  • C. China becoming the world’s manufacturing hub
  • D. South Korea and Taiwan rising from periphery to high income
Why

Dependency theory predicts the periphery stays locked out, so the East Asian ascents are its hardest cases. The theory’s home turf is options 2 and 4: colonial specialization and unequal exchange, which it explains better than modernization theory does.

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