Advocates of Dependency Theory Assert That

question 18

Multiple Choice

Advocates of dependency theory assert that

• A) poor countries are hampered from participating in free trade because of a lack of transportation infrastructure.
• B) the high rate of poverty in poor countries is attributed to underdeveloped markets and the lack of property rights.
• C) trade based on comparative advantage benefits developed countries at the expense of poor countries.
• D) the key reason why poor nations have been slow to industrialize is because of persistent misallocation of resources.

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Definitions:

Depreciation Expense

The allocation of the cost of a tangible asset over its useful life, reflecting wear and tear or obsolescence.

Capitalized

Recorded as an asset rather than an expense, allowing the cost to be expensed incrementally through depreciation or amortization.

Implicit Interest Rate

The interest rate in a lease or loan that is not explicitly stated but can be calculated by comparing the present value of the lease payments or loan repayments to the original amount financed.

Present Value Factors

Multipliers used in calculating the present value of a future amount of money or cash flows, considering a specific interest rate over a period of time.