What characterizes periphery nations in the global economy?

Periphery nations are characterized by their reliance on the production of raw materials and labor as their primary economic activities. These countries are often less economically developed and typically play a subordinate role in the global economy. They supply resources such as minerals, agricultural products, and labor to more developed, or core, nations, which often process these raw materials and sell finished products back to the periphery nations or the global market.

This economic structure leads to an unequal distribution of wealth and resources, where periphery nations are often exploited for their natural wealth without gaining significant benefits from the manufacturing processes or the added value that occurs in core nations. Understanding this dynamic helps to highlight the disparities in global economic relations, such as those illustrated by concepts in dependency theory and world-systems analysis, which explain how peripheral nations are incorporated into a global capitalist economy.