Question

which of the following best illustrates the concept of unequal exchange in global trade?

a. a transnational corporation relocating production to reduce costs

b. a global south country exporting low - value raw materials while importing high - value manufactured goods

c. a government using tariffs to protect local industries

d. a world bank program financing microcredit schemes

Explanation:

Unequal exchange refers to a situation where countries in the Global South export low - value raw materials and import high - value manufactured goods, creating an imbalance in trade. This is due to the global economic structure and power dynamics. Option a is about cost - reduction by a corporation, option c is about protectionism, and option d is about a financing program.

Answer:

B. A Global South country exporting low - value raw materials while importing high - value manufactured goods