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 in global - trade, one party gets a disproportionately lower value in the exchange compared to the other. A Global South country exporting low - value raw materials and importing high - value manufactured goods shows such an imbalance, as the value added during the manufacturing process in the importing (usually Global North) country is much higher than the value of the raw materials. Option a is about cost - reduction, option c is about protectionism, and option d is about financing microcredit.

Answer:

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