The essential features of ‘dependency theory’ are as follows:
- Third world countries have become more dependent on the rich, industrialized nations of the West since World War II.
- Our resources and labor force are used to produce goods for an export market, thereby contributing to the growth of a global market economy.
- The terms of trade favor the West, resulting in a massive drain of foreign exchange and transfer of capital from the poor to the rich nations.
- The tourism industry is one which has a truly international structure, in that the majority of its infrastructure are owned or controlled by multinational corporations (MNCs, also known as TNCs or transnational corporations).
- The combination of hotels, airlines, tour operators and ground agencies into a single structure is known as vertical integration of the tourism economy. Apart from the obvious convenience of management and operation, such structures essentially serve to create and reinforce possibilities for profit maximization.