Which structural problem of developing countries does unequal exchange theory explain?

Correct answer: Dependence through raw material export and expensive manufactured imports

The direct answer is A: dependence arose when countries exported raw materials and imported expensive manufactured goods. Unequal exchange is a theory about unequal power and value in international trade. Step by step: a country sells primary goods such as minerals or agricultural products; prices and earnings from these goods may be low or unstable; it buys machines and finished products at higher prices; much of its income leaves through imports, while local industry remains weak; dependence is reproduced. A is correct because it identifies this trade structure. B is wrong because the theory rejects the idea that every country gains equally. C is wrong because raw-material export does not automatically make local industry prosperous. D is wrong because the theory concerns foreign trade, not its absence. Memory cue: raw materials out, costly finished goods in—dependence can grow.