Explain the basic propositions of dependency theory. Discuss the three approaches to dependency theory in the context of Latin America.

Dependency theory is a structuralist perspective in development economics that emerged in response to modernization theory. It seeks to explain the persistent economic underdevelopment of certain nations, particularly in Latin America, by examining the historical and structural factors that shape their economic relationships with developed countries. The theory argues that global capitalism creates a dependency relationship between the developed "core" nations and the underdeveloped "peripheral" nations, leading to economic exploitation and underdevelopment.  

### Basic Propositions of Dependency Theory  

1. Core-Periphery Structure: Dependency theory classifies the global economic system into two main groups: the "core" (developed nations) and the "periphery" (underdeveloped or developing nations). The core nations dominate and exploit the periphery, extracting resources, labor, and capital in a way that benefits the developed world while keeping the developing nations in a state of economic subjugation.  

2. Historical Exploitation: Dependency theorists argue that colonialism and imperialism laid the foundation for modern economic dependency. During colonial rule, raw materials and wealth were extracted from colonies and transferred to industrialized nations, creating an imbalance in economic development. Even after decolonization, the economic structures remained, perpetuating dependency through trade, finance, and political influence.  

3. Unequal Exchange and Deteriorating Terms of Trade: Peripheral nations primarily export raw materials and agricultural goods while importing manufactured goods from core nations. Over time, the relative prices of primary goods tend to decline compared to industrial goods, leading to deteriorating terms of trade. This means that developing countries must export more and more raw materials just to maintain the same level of imports, reinforcing their economic dependency.  

4. External Control and Limited Development Options: The economies of peripheral nations are largely influenced by foreign multinational corporations (MNCs), international financial institutions (such as the IMF and World Bank), and powerful states in the global economy. These external forces ________ ________ _______ __________ ______ _________ ________.
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