Modernization:

Modernization refers to the process of social, economic and cultural transfromation where a country developes from being underdeveloped to a mordern society heading to the prescriptions of the More Developed countries, for example, North America.

Theorists of modernization say that in order for a country to be modernized, the tradition-oriented cultures have to be left behind. The theories state that poor countries are poor because they are yet to develop into modern economies. A country is also considered to be modernized when people have political and economic freedom.

Dependency Theory:

The dependency theory means that More Developed Countries experience growth at the expense of Less Developed Countries. 

Theorists of dependeny argue that 3rd world countries are poor because they are being exploited by 1st world countries which developed from colonialism. The theory also advances that all contemporary societies are combined into one world economic system which is capitalist the system.