Early dependency theory, associated with Andre Gundar Frank, contended that:
A) Foreign investment promotes economic growth
B) Foreign investment works to underdevelop Third World countries
C) Foreign investment in mining is productive, but not in industry
D) Foreign investment is a necessary stage for capitalist development

Question

Quizplus · Accepted Answer

Early dependency theory, particularly as associated with Andre Gunder Frank, argued that foreign investment and the economic policies and structures it encouraged, far from promoting economic development, actually led to the underdevelopment of Third World countries. This perspective challenges more traditional views that foreign investment is a catalyst for economic growth, suggesting instead that it perpetuates a cycle of dependency and economic disparity.

Early Dependency Theory, Associated with Andre Gundar Frank, Contended That