INTL DV 1 Lecture Notes - Lecture 1: Periphery Countries, Core Countries, Dependency Theory
Document Summary
An institution is a social construct of constraints that influence human behavior. This construct is manifested into laws, regulations, and reforms that align with the status quo of those laws and regulations. Institutions have blocked individuals and countries from reaching development. In fact, institutions have pushed certain individuals and countries further into underdevelopment. Through the creation of economic gaps and deprivations of individual freedoms within social groups, institutions have shaped inequalities across and within the global. First, an institution shapes inequality through the creation of economic barriers. The global economic system is composed of two groups: core countries and periphery countries. Based on the dependency theory intertwined with the regulations of the world trade. Organization (wto), both economic groups rely on each other: core countries rely on periphery countries for cheap labor, whereas periphery countries rely on core countries for survival (wright, 2022).
