Which theory explains core, semi-periphery, periphery, and external areas in the global economy?

Which theory explains core, semi-periphery, periphery, and external areas in the global economy?

• A. World Systems Theory
• B. Dependency Theory
• C. Modernization Theory
• D. Ravenstein's Laws

Answer: (A)

World-Systems Theory describes the global economy as an integrated system divided into core, semi-periphery, periphery, and external areas. Core countries concentrate advanced industries, technology, financial power, and high-value activities, which allows them to capture most of the profits from international trade. Peripheral countries supply raw materials and labor, often with little industrial diversification and weaker bargaining power, so they receive a smaller share of the value added. Semi-peripheral countries sit between these two poles, producing some manufactured goods and services but still relying on core regions and facing vulnerability to shifts in global demand. External areas are regions outside the main capitalist world-economy, historically outside its core flows, but their status can change as they become more integrated or remain marginal. This framework explains why wealth and development are unevenly distributed across regions and how economic power moves over time.

World-Systems Theory describes the global economy as an integrated system divided into core, semi-periphery, periphery, and external areas. Core countries concentrate advanced industries, technology, financial power, and high-value activities, which allows them to capture most of the profits from international trade. Peripheral countries supply raw materials and labor, often with little industrial diversification and weaker bargaining power, so they receive a smaller share of the value added. Semi-peripheral countries sit between these two poles, producing some manufactured goods and services but still relying on core regions and facing vulnerability to shifts in global demand. External areas are regions outside the main capitalist world-economy, historically outside its core flows, but their status can change as they become more integrated or remain marginal. This framework explains why wealth and development are unevenly distributed across regions and how economic power moves over time.