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A Factory in Country X Purchases Raw Materials from Country

question 31

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A factory in Country X purchases raw materials from Country Y to make its product.Profits will be reinvested in the factory,increasing production and profits in Country X.Country Y will never make enough profits from the sale of materials to build its own factory.What theory could be used to explain the relationship that has developed between countries X and Y?


Definitions:

Oceanic Crust

The thin layer of crust that forms the ocean floors, primarily composed of basalt and gabbro, and denser than continental crust.

Uppermost Mantle

The top layer of the Earth's mantle, directly beneath the Earth's crust, involved in tectonic plate movements and magma generation.

Isostasy

The condition of equilibrium, comparable to floating, of the crust resting on the solid mantle.

Equilibrium

A state of balance between opposing forces or actions.

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