Dependency Theory Assumes That Export Industries in a Poor Country

Dependency theory assumes that export industries in a poor country have small multiplier effects throughout the rest of the economy. Which of the following is a policy implication of this assumption?

A) Trade based on comparative advantage cannot benefit poor nations.
B) Governments of poor nations should take whatever steps are necessary to prevent the repatriation of profits earned by multinational corporations operating in their countries.
C) Production should be undertaken by the public sector and not the private sector.
D) These countries should pursue policies of self-reliance such as import-substitution policies rather than export-led policies.

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