From a perspective which stresses the importance of the global capitalist system in the determination of structural opportunities opened to parts of this system, three theoretical formulations are critically explored. These conceptualisations are related to the likelihood of an industrial transformation and the articulation of external and internal variables is examined in this context. For Cardoso and Faletto, the distinction disappears in the discussion of political developments within nation‐states. But, for Murray, nation‐states and, hence, internal factors are but subsidiary modifiers of omnipresent laws of motion. Bienefeld and Innes attempt a conceptualisation of centre and periphery for the capitalist system. but the concepts remain insufficient for the problem at hand. In short, the three approaches offer no satisfactory articulation of external and internal factors in the determination of the industrial prospects of peripheral societies.