TOEFL Sample Question
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CLI 아카데미
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2013-04-21 09:39
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4470
Read the following passage. Then fill in the diagram with the information that you read.
Dependency Theory
Dependency theory originated in the 1950s to explain why certain nations remained poor and failed to integrate into the world economy. Even then, the world economy was becoming more global in scope. Poor nations today are still often dependent upon larger, more developed nations of the world. The theory states that they will remain so unless they enact major economic reform.
Dependency theory asserts that the economic development of poor nations cannot continue unless they significantly restructure their import and export programs. Raul Prebish, a leading dependency theorist of the 1950s, stated that developing nations typically rely upon the export of raw materials or simple commodities for their economic well-being. Neither of these exports, however, can supply enough capital for these nations to expand their economies significantly. Further, these developing countries also import many of their basic needs, such as clothing, vehicles, and medicine. Prebisch noted that, in most developing countries, export activity is lower than import activity. Therefore, the revenue gained from exporting is considerably lower than the expenditures required to import such necessities. This reliance upon imports assures that developing nations cannot support a healthy economy.
An example of this theory was seen in many Caribbean nations. Countries in the Caribbean display economic dependence through their reliance on single exports (such as sugar) or industries (such as tourism). These countries rely on imports in order to fulfill their basic needs. For example, Grenada exports mainly bananas, cocoa, and nutmeg, since these grow well there. However, it imports machinery, fuel, manufactured goods, and many food items. The profits from the few export industries cannot match the necessary spending for imports. There, Prebisch would argue, Grenada cannot progress economically and will remain dependent upon developed nations. Prebisch and other dependency theorists suggest that the only viable solution for these developing nations is to reduce dependency upon imports from other nations. To achieve this, the dependent countries must increase their level of manufacturing.
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Integrate : to combine into a whole
Restructure : to change completely
Capital : money
Revenue : an amount of money brought in from sales
Expenditure : an amount spent; a cost
Viable : able to be put into practice; practical
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Q. According to paragraph 1, all of the following are true of dependency theory EXCEPT:
(A) It was introduced in the 1950s.
(B) It explains why some nations remain poor.
(C) It says that poor countries cannot progress.
(D) It claims that small nations are dependent on developed nations.
A > (C) It says that poor countries cannot progress.