How Does Modernization Theory Address the Issue of Global Stratification

question 62

Multiple Choice

How does modernization theory address the issue of global stratification?

• A) It considers all nations of the world as being in a worldwide division of labor.
• B) It stresses the dependency that low-income nations have on high-income nations in trade, industrialization, and finance.
• C) It endorses the annexation of low-income nations by high-income nations in a colonialism relationship.
• D) It recognizes global development as a process in which advanced industrial nations and technology help poor nations advance.

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Definitions:

New Reserves

Resources or assets that have been newly discovered or identified, often referring to natural resources like oil, gas, or minerals that can be economically extracted.

Reserve Requirement Ratio

The fraction of deposits that banks must hold in reserve and not lend out, as mandated by the central bank.

Checkable Deposits

Bank account balances that can be withdrawn on demand using checks or electronic payment methods without any advance notice.

Excess Reserves

The amount of reserves that a bank holds in excess of the reserve requirements set by a central bank.