Final answer:
The theory best suited to examine deforestation in the Amazon is the Political Economy Theory, which explores the political, economic, and social factors that drive deforestation.
Step-by-step explanation:
The theory best suited to examine deforestation in the Amazon is the Political Economy Theory. This theory explores the political, economic, and social factors that drive deforestation. It suggests that international consumers and development policies played a significant role in the destruction of the rainforest, incentivizing activities like cattle ranching.
Example: Institutions provided tax cuts and incentives for cattle ranchers, which led to the conversion of rainforest into pasture land, driven by the demand for beef products from European consumers and Brazilian ranchers.