Bronfenbrenner's bio-ecological systems theory proposes that a child's development is influenced by different environmental systems, including the microsystem of immediate relationships, the mesosystem of connections between microsystems, the exosystem of external social settings, and the macrosystem of cultural values and beliefs. This theory views human development as being shaped by interactions within multiple environmental layers and emphasizes the importance of understanding development in the context of relationships experienced over time in real-life settings.