A situation where a powerful nation exercises considerable economic influence over a less powerful one, often without direct political control, is a key concept in AP World History. This influence might manifest through trade agreements, investment, debt, or control of key industries. An example includes the British influence over Argentina in the 19th century, where British investment and trade dominated the Argentine economy, shaping its development without direct British colonial rule.
Understanding this dynamic is crucial for analyzing global power relationships from the 19th century onward. It helps to explain how industrialized nations were able to extract resources and markets from less developed regions, fostering economic dependency. Studying this allows for a nuanced understanding of the motivations behind colonialism and its long-term consequences on global economic inequalities.
