Principles of Macroeconomics / Unit 16 MAC 1511 short lesson, about 20 seconds
Dependency Theory and Import Substitution
Captions available
The idea
Dependency theory held that poor countries are poor because of their dependence on rich ones, and that trade transfers the gains to the richer partner. The strategy it implied was import substitution.
In practice
Block imports and make those goods at home, copying what industrialised countries already made.
Where people slip
This directly challenges comparative advantage, which unit seventeen takes up.
Your place on the trail
Every lesson rests on earlier ones and opens later ones. Tap any to jump.
Builds on
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