Dependency Theory and Maquilladors

Dependency Theory presents an explanation of the world economy that can be seen as the opposite to the free market idea. Dependency theorists argue that the world economy isn't based on free market trade. Rather, they think that countries are dependent on one another, and the theory examines the relationship between the dependent countries and the dominant countries. As opposed to a free market economy, a dependent one basically involves the dominant countries take advantage of the dependent country. The theory also stresses that as this dependent relationship goes on, it only gets worse for the dependent countries. Core countries often use their own wealth and power to influence the semi-periphery/periphery countries' to the point where the dependent have no say in the world economy.

Maquilladoras are factories that produce goods to be exported duty-free and tariff-free worldwide. Maquilladaroras are found throughout Mexico. This system allows factory owners to take advantage of low cost labor in order to make a bigger profit.

The link for Maquilladors is:

http://www.britannica.com/EBchecked/topic/363663/maquiladora