Which of the following factors has been suggest as an explanation for the lack of economic growth in many poor nations ?
Correct answer: A. The constraints imposed by dependency on the already-developed nations
- A. The constraints imposed by dependency on the already-developed nations
- B. A steady rate of capital formation
- C. An adequate level of social overhead capital
- D. The supply of human resources is too high
Explanation
Dependency theory argues that poor nations can remain underdeveloped because their economic relationships with richer countries limit domestic industrialization and keep them dependent on external markets and capital. The other options describe conditions that would normally support growth.
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