L4 - Dependency Flashcards
1
Q
What is Ecuador’s main trade?
A
Bananas
2
Q
Who is Ecuador’s biggest customer of their trade?
A
EU
3
Q
What do quotas do?
A
It restricts imports
4
Q
What do tariffs do?
A
Makes imports more expensive
5
Q
What at are some of the points FOR the dependency theory?
A
- EU has kept Ecuador out and protected its former Caribbean colonies
- Banana multinationals earn lots of money + use US + WTO to fight their battles
- Gap between world’s richest and world’s poorest is bigger than ever
6
Q
Who are the winners (within the dependency theory)?
A
EU consumers
7
Q
Who are the losers (within the dependency theory)?
A
banana workers + small producers
8
Q
What are some of the points against the dependency theory?
A
- Emerging economies like China and India used trade barriers to protect their industries
- Emerging nations are catching up
- Consumers in poor countries also benefit from cheaper manufactured products
9
Q
What is the dependency theory?
A
The movement of resources from a periphery (poor country) to the core (wealthy countries), causing the core to become richer.
10
Q
Name an example of a periphery
A
Ecuador
11
Q
Name an example of a core
A
EU
