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:

Cash Inflows

The total amount of money received by a company from its various business activities, including sales, financing, and investments, during a specific period.

Net Income

What remains of a company’s revenue after all expenses, including taxes and costs, have been removed.

Balance Sheet Equation

An accounting formula representing the relationship between assets, liabilities, and owner's equity (Assets = Liabilities + Owner's Equity).