Concept:
Dependency Theory, developed by scholars such as Andre Gunder Frank, argues that underdevelopment is not a natural stage of development but is the result of the historical integration of developing countries into the global capitalist system. According to this theory, wealthy (core) countries exploit poorer (periphery) countries through unequal economic relationships, causing persistent poverty and dependence.
The central ideas of Dependency Theory include:
• Unequal exchange between developed and developing nations.
• Exploitation of peripheral countries by core capitalist economies.
• Development of rich nations often occurs at the expense of poor nations.
• Underdevelopment is produced by dependence on the global capitalist system.
Step 1: Recall the main argument of Andre Gunder Frank's Dependency Theory.
Andre Gunder Frank argued that underdevelopment results from the integration of less developed countries into the international capitalist system, where they remain economically dependent on developed nations.
\[
\boxed{\text{Integration into the Global Capitalist System} \Longrightarrow \text{Dependency} \Longrightarrow \text{Underdevelopment}}
\]
Step 2: Examine the given options.
• Cultural Barriers -- Not the main explanation given by Dependency Theory.
• Insufficient Modernization -- This is the view of Modernization Theory, not Dependency Theory.
• Integration into global capitalist system -- Correct according to Andre Gunder Frank.
• Lack of foreign investment -- Not regarded as the primary cause of underdevelopment by Dependency theorists.
Hence,
\[
\boxed{\text{(C) Integration into global capitalist system}}
\]