Modernization Theory Predicts That the Likelihood of a Transition to Democracy

question 41

True/False

Modernization theory predicts that the likelihood of a transition to democracy decreases with income, whereas the survival story predicts that transitions to dictatorship become more likely with income.

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Definitions:

Trade Deficit

An economic condition that occurs when a country imports more goods and services than it exports.

Appreciate

In economic terms, an increase in the value of an asset or currency.

International Value

The worth or significance of goods, services, assets, or currencies when evaluated on a global scale or in more than one country.

Foreign Exchange Market

An international exchange system where national currencies are swapped against each other.