What are the two popular model …

Dependency theory uses political and economic theory to explain how the process of international trade and domestic development makes some LDC's ever more economically dependent on developed countries ("DC's"). Dependency theory refers to relationships and links between developed and developing economies and regions. The United States has the best economic model, because it has no economic model. If you look at the Constitution, it does not dictate any economic model. And that is as it should be. A system that allows any voluntary and informed transactions or interactions is a 'free-market' system. An economic model is a simplified version of reality that allows us to observe, understand, and make predictions about economic behavior. The purpose of a model is to take a complex, real-world situation and pare it down to the essentials. ... Sometimes economists use the term theory instead of model.