Is dependency a problem in less developed countries, Business Economics

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Is dependency a problem in Less Developed Countries?

Problem: DCs exploit Less Developed Countries by extracting their surplus value. This value becomes the difference among the values of what an LDC produces and what this is paid to produce such by a DC.

Free trade and transnational foreign direct investment warps the entire economics and social structure of LDCs that become geared to meeting the needs of DCs for example export, orientated industries.

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