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Choose the incorrect statement regarding propositions of Dependency Theory :

  • A.Developing/underdeveloped countries do not exist in isolation. They can only be understood in the context of world economic and political system.
  • B.The relationship between core and periphery countries is disadvantageous for core countries.
  • C.As long as capitalism remains the dominant world economic system there is no reason for the situation of developed and underdeveloped countries to change.
  • D.Poor states are impoverished and rich ones enriched by the way poor states are integrated into the world system.

Answer: B

The incorrect statement is The relationship between core and periphery countries is disadvantageous for core countries.

Dependency theory (Frank, Amin, Cardoso) argues the reverse: the relationship benefits the core, which draws surplus from the periphery through unequal exchange, while the periphery is kept underdeveloped. That is why the other statements are correct propositions of the theory: underdeveloped countries can be understood only within the world system; under capitalism the gap will not close; and poor states are impoverished, and rich ones enriched, by the way the poor are integrated into the world economy.

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