According to Dependency Theory, Foreign Investment in Countries on the Periphery

question 169

Multiple Choice

According to dependency theory, foreign investment in countries on the periphery gives rise to some low-paying jobs for local labour; however, the greatest benefit flows to which of the following?

• A) the social service infrastructure in peripheral countries
• B) multinational corporations in the form of raw materials and profits
• C) highly skilled, white-collar jobs in the core nations
• D) increased number of manufacturing jobs in the core nations

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Definitions:

Initial Cost

The initial expense of acquiring an asset, including purchase price, setup, and preparation costs.

Accumulated Depreciation

The total amount of a tangible asset's cost that has been allocated to depreciation expense since the asset was put into use.

Gain Or Loss

The financial result that occurs when the selling price of an asset differs from its purchase price, either positive (gain) or negative (loss).

Initial Cost

The purchase price or construction cost of an asset or investment, not accounting for depreciation or amortization.