Explain the core-periphery concept and identify the roles of core, periphery, and semi-periphery.

• A. Core countries rely on agriculture and export raw materials.
• B. Periphery countries dominate global trade and capital.
• C. Core countries dominate trade and capital, periphery provides resources and labor, semi-periphery lies in between.
• D. There is no hierarchy in the global economy.

Answer: (C)

Think about the core–periphery structure in the global economy: a hierarchy where wealth, power, and production are concentrated in a few core countries, while resources and labor flow from the periphery, with the semi-periphery sitting in between. Core countries dominate trade and capital, having diversified, high-value, tech-driven economies and strong financial institutions. Periphery countries supply resources and labor, often with less diversification and lower-value production, and they remain more dependent on core markets. Semi-periphery countries occupy a middle ground, both exploiting the periphery for resources and labor and being exploited by the core; they typically show some industrialization and the ability to produce higher-value goods, but not with the power of the core.

This arrangement is best captured by the statement that the core dominates trade and capital, the periphery provides resources and labor, and the semi-periphery lies in between. The other options misstate these roles or deny the hierarchical structure.