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.

---

Definitions:

Black Filmmaker

A term referring to film directors, producers, and writers who are of African descent, often emphasizing narratives, experiences, and perspectives unique to the African American or wider African diaspora community.

Spike Lee

An American film director, producer, screenwriter, and actor known for his films that deal with controversial social and political issues.

Do The Right Thing

A film directed by Spike Lee in 1989 that explores racial tensions in a Brooklyn neighborhood on the hottest day of the year.

Black Female Billionaire

A woman of African descent whose net worth exceeds one billion dollars, highlighting significant success in industries often dominated by others.