A legend is a story describing an amazing event, passed down from generation to generation. Unlike myths, legends have a basis in historic fact, perhaps not verifiable. Countries with lower levels of progress and prosperity are considered less developed or underdeveloped countries. Countries showing evidence of economic, social, and political progress are termed developing countries. Countries do not necessarily move through these stages in any order.
Rules pass from generation to generation and the economy exists in equilibrium based on tradition.
The second state is one of transition when cultural traditions begin to crumble and people adopt new patterns of living. During takeoff a nation spends more of its national income, new industries grow, and profits are reinvested. Both the agricultural and the industrial sectors expand. Core industries develop and the rates of technological development and capital investment increase. The nation enters the international economy, making goods and services for other nations.