Dependency Theory Assumes That Export Industries in a Poor Country

question 96

Multiple Choice

Dependency theory assumes that export industries in a poor country have small multiplier effects throughout the rest of the economy. Which of the following is a policy implication of this assumption?

• A) Trade based on comparative advantage cannot benefit poor nations.
• B) Governments of poor nations should take whatever steps are necessary to prevent the repatriation of profits earned by multinational corporations operating in their countries.
• C) Production should be undertaken by the public sector and not the private sector.
• D) These countries should pursue policies of self-reliance such as import-substitution policies rather than export-led policies.

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Definitions:

Bony Ossicles

Small bones, often found in the middle ear, that aid in hearing.

Oval Window

A membrane-covered opening that connects the middle ear to the inner ear, facilitating the transmission of sound vibrations.

Eardrum

A thin membrane that separates the external ear from the middle ear, and vibrates when sound waves hit it, aiding in hearing.

Eighth Cranial Nerve

Also known as the vestibulocochlear nerve, it is responsible for transmitting sound and equilibrium (balance) information from the inner ear to the brain.