Raúl Prebisch’s core-periphery model described the global economy as one connected system divided into “core” and “periphery” countries. The core consisted of industrialized economies, while the periphery was made up largely of countries dependent on agriculture and resource extraction. He argued that agricultural and mineral commodity prices tended to fall over time compared with prices for manufactured goods. Therefore, he believed developing countries should promote local manufacturing instead of mainly exporting raw materials.
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