Modernization Theory Argues That ______

question 16

Multiple Choice

Modernization theory argues that ______.

• A) there are stages of growth for each society, and that poor countries should replicate rich countries' path of development
• B) rich countries got rich at the expense of poor countries, and that the international economy structurally favors rich countries
• C) growth occurs if and when the state plays an active role in investment and innovation to build the competitiveness of national industries
• D) poor countries can develop quickly and efficiently by focusing on competition and commodification in all parts of life

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Definitions:

Current Ratio

A liquidity ratio that measures a company's ability to pay short-term obligations with its current assets over its current liabilities.

Working Capital

The difference between a company's current assets and current liabilities, indicating its short-term liquidity.

Current Assets

Current assets are short-term assets that are expected to be converted into cash, sold, or consumed within one year or within the business's operating cycle, whichever is longer.

Working Capital

The difference between a company's current assets and current liabilities, indicating the liquidity available to fund its day-to-day operations.