The "Dependencia" theory holds that the terms for a foreign investor's operations depend on how much the investor and the host country need each other's assets.

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The "Dependencia" theory, or Dependency Theory, suggests that resources flow from a "periphery" of poor and underdeveloped states to a "core" of wealthy states, enriching the latter at the expense of the former. It does not specifically focus on the mutual dependency of foreign investors and host countries.

The "Dependencia" Theory Holds That the Terms for a Foreign