Which theory proposed by Immanuel Wallerstein describes core, periphery, and semi-periphery in the world economy?

Which theory proposed by Immanuel Wallerstein describes core, periphery, and semi-periphery in the world economy?

• A. Neoliberal Policies
• B. World Systems Theory
• C. Export Processing Zones
• D. Dollarization

Answer: (B)

Immanuel Wallerstein’s World-Systems Theory explains how the world economy operates as a single, interconnected system with a hierarchical division of labor. It shows why some countries sit at the core—those with advanced industries, strong financial sectors, and substantial control over global production—while others form the periphery, exporting raw materials and labor at low costs and with limited industrial capacity. In between lies the semi-periphery, which contains rising industries and growing influence but remains dependent on core capital and trade patterns. This framework captures the persistent inequalities and the flow of surplus from less powerful regions to dominant ones, as well as how shifts in power can move countries between these positions. The other options describe different ideas (policy approaches, special manufacturing zones, or currency arrangements) that don’t map the global hierarchy of core, periphery, and semi-periphery in the world economy.

Immanuel Wallerstein’s World-Systems Theory explains how the world economy operates as a single, interconnected system with a hierarchical division of labor. It shows why some countries sit at the core—those with advanced industries, strong financial sectors, and substantial control over global production—while others form the periphery, exporting raw materials and labor at low costs and with limited industrial capacity. In between lies the semi-periphery, which contains rising industries and growing influence but remains dependent on core capital and trade patterns.

This framework captures the persistent inequalities and the flow of surplus from less powerful regions to dominant ones, as well as how shifts in power can move countries between these positions. The other options describe different ideas (policy approaches, special manufacturing zones, or currency arrangements) that don’t map the global hierarchy of core, periphery, and semi-periphery in the world economy.