According to the World-Systems Theory, the nations of the world are classified into Core, Semi-Periphery, and Periphery countries. Core countries are the most developed while the periphery are the least. According to another underlying theory of World-Systems Theory, the Dependency Theory, resources stream from the underdeveloped states (Periphery Countries) to the developed states (Core Countries). This might not seem much of a disturbing matter, but developed nations can turn the tide of this relationship. In some occasions the exploitation of periphery countries' agriculture, inexpensive labor, and natural resources enable core nations in remaining dominant and ahead, which is clearly advantageous on their part.
Increased Demand for Resources.
Most resource-abundant countries rely on their natural resources to boost their economy. They compete in the global market by offering their products to other countries in varying prices. Importing and more developed nations choose the products of these underdeveloped nations over their own either because they don't have those resources inside their boundary or the prices of these resources are much cheaper. This has several implications for the resource-abundant economies. First, they experience growth in demand for their resources. Next, there are traditional consequences of the export booms, including increase in exchange rate which results to country's industries decline on global and local competitiveness. For countries with loose and incoherent institutions and policies, there is a threat of over-specialization in raw materials exports and the decline of tradable manufacturing industries and jobs- and thus fewer opportunities for future growth based on the externalities these industries generate. Finally, these countries become, in effect of over-exploitation to cope up with demand, a place of resource depletion and greenhouse gas release.
