Trade and the World Economy Practice Test

A secondary-source summary of core–periphery trade notes that many peripheral states export low-value primary commodities and import high-value manufactured goods, creating unequal exchange and reinforcing dependency. Using this framework, which outcome best illustrates a core–periphery trade relationship in the contemporary world economy?

Secondary source excerpt (trade patterns and world economy — commodity dependence in developing countries, 75–125 words): Many developing economies rely heavily on one or two primary commodity exports—such as coffee, copper, or crude oil—to earn foreign exchange. When global prices fall, government revenues and household incomes can drop quickly, increasing debt and forcing cuts to public services. Commodity booms may bring short-term growth, but they can also discourage investment in education and manufacturing if leaders assume high prices will persist. Over time, dependence can heighten vulnerability to external shocks and make long-term planning difficult.

Which option most directly identifies the key risk described in the excerpt?