Modernisation Theory
- A theory proposed to explain the dominance of the British Empire and the USA according to their history of industrial modernization. It relates to five different stages of economic development.
- Assumes all countries follow the same development pathway.
- Socialist and communist countries could not develop unless they adopted model.
- Gave industrialized countries advantage.
Dependency Theory
- Theory views the world as having an economically developed core and an underdeveloped periphery.
- Model views the periphery as being kept dependent on the core, thus continuing its state of underdevelopment.
- Capitalist core keeps the periphery in a state of underdevelopment by exploiting cheap resources and taking its most skilled workers such as TNCs in Taiwan.
- Superpowers are developed. Underdeveloped have no chance.
World Systems Theory
- A three-tier world with a core, semi periphery and a periphery.
- More realistic such as USA in top tier, using workers from periphery.