What are the assumptions of dependency theory, Business Economics

Assignment Help:

What are the assumptions of dependency theory?

The assumptions of dependency theory:

Dependency theory extends Marx is theory of surplus value to international relationships. For Marx, labour is the simply source of economic value. The capitalist pays his employees less than the value their labour has added to the good, maintenance the surplus into the form profit and interest.

This is equally true that DCs exploit LDCs (less developed countries) by extracting their surplus value. Each surplus value becomes the dissimilarity among the values of what an LDC produces and what this paid to produce that by a DC.

Free transnational and trade foreign direct investment distorts the whole economics and social structure of Less Developed Countries (LDCs) that become geared to meeting the requirements of DCs for example: export and orientated industries.


Related Discussions:- What are the assumptions of dependency theory

How does the exchange rate influence the benefits of trade, How does the ex...

How does the exchange rate influence the benefits of trade? Mutually beneficial international trade arises specified the exchange ratios lie among the internal opportunity cost

Essay, 1500 word essay

1500 word essay

Assignment 3, #question.#quesExamine the expenditure trends over the last 4...

#question.#quesExamine the expenditure trends over the last 40 years. What are the direction and magnitude of changes in spending in and between these various categories (with the

Compute the lp valuation, Consider another company, Lateco, which has just ...

Consider another company, Lateco, which has just received its fifth round of investment.  These rounds have been: Series A: CP ($5M FV) or converts to 5M shares of common. Se

Gross domestic production, Explain the statement "during the second quarter...

Explain the statement "during the second quarter of 2010 Irish gross domestic product fell by 1.2%. According to given statement Ireland's gross domestic production fell down i

How does sectoral change enhance development, How does sectoral change enha...

How does sectoral change enhance development? The Lewis Model argues economic growth needs structural change into the economy whereby surplus labour into traditional agricultu

Traditional Theory Of Profit Maximization, Do you agree with the traditiona...

Do you agree with the traditional theory that assumes profit maximization as sole objective of a business firm?

Business assignment, Ask question #. Explain why under fixed exchange rates...

Ask question #. Explain why under fixed exchange rates the monetary policy is not effective#

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd