Dependency theory characterizes countries as being either in the center or on the periphery. Explain these two concepts. If this theory is correct, what are the implications for development strategy?
What will be an ideal response?
Grading would depend on what is covered in lecture, but an answer might include inward looking trade policies, regional economic integration, collective action to increase bargaining power in relation to multinational corporations, as well as creation of state-owned enterprises.
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In September 2008, Regions Bank has $89 million in M1 deposits, $3 million in reserves and $81 million in loans. Regions Bank's desired reserve ratio is
A) 3.4 percent. B) 3.7 percent. C) 91 percent. D) 29.67 percent.
Economic restructuring that takes place as a result of opening to trade with other countries
A) contradicts the idea of gains from trade. B) causes some trading activity to be zero sum. C) worsens the nation's allocation of resources. D) improves the nation's allocation of resources. E) is a highly unlikely event.
Justin's bank employs tellers and ATMs. Both are able to serve clients in the exact same way and therefore are perfect substitutes. Describe the elasticity of substitution between the two inputs
What will be an ideal response?
Which of the following is true regarding the "American Recovery and Reinvestment Plan"?
A. Critics argued that in order to pay the deficits created by the plan, the government would be forced to raise taxes and cut spending, which would reverse the boost from the stimulus. B. The massive 2009 stimulus package was designed to jump-start the recession-bound economy. C. Critics argued that the massive deficits generated by President Obama's plan would undermine America's financial stability. D. All of the choices are correct.