In the era of globalization, understanding the interrelationship among different nation-states is extremely relevant for policymakers and leaders of the world. Dependency theory is one such theory that assists us to understand the complex intricacies of this world in a better way. The paper focuses on the analysis of dependency theory and its tool to explain the structure of global economy. Raul Prebisch's 1960s research popularised dependence theory. Prebisch found that wealthier countries' gains hurt poorer ones. Dependency theory is founded on a Marxist worldview that sees globalization as the growth of market private enterprise and the abuse of shabby labor and possessions as the West's historical achievements. Dependency theory promoted an inward-looking approach to growth and a bigger role for the government in removing barriers to exchange, making internal ventures difficult, and nationalizing significant enterprises. The paper attempt to measure the merits and demerits of dependency theory in understanding the structure of the global political economy.