Which of the Following Constitutes the Best Evidence for Globalization

question 23

Short Answer

Which of the following constitutes the best evidence for globalization?
Diamonds that are mined in Country X are sold on the diamond market in Country Y and the money is used to fund a rebel group trying to overthrow the government in Country X.
A flood in country X causes factories to shut down temporarily and they cannot deliver computer chips to foreign buyers. Company Y (in another country) has to reduce its output, and it also raises the price of its products.
Farmers in Country X lose most of their wheat crops because of a drought. The price of wheat triples and the government of country X reimburses farmers for some of their losses.
Country X has almost exhausted all of its available natural energy sources. The government has been investing in alternative energy research for many years and has developed an efficient synthetic energy source.
Country X has raised the tax on gasoline and, as a result, more of its citizens are taking public transportation and cutting back on car travel.

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Definitions:

Amortization

The gradual reduction of a debt or the spreading of the cost of an intangible asset over its useful life.

Asset Turnover

An efficiency indicator that evaluates how a company's assets are used to produce revenue from sales.

Goodwill

The intangible asset that arises when a business is purchased for more than the sum of its net assets' fair market value, reflecting brand, customer loyalty, and other non-physical assets.

Depletion

The allocation of the cost of natural resources over their useful life or extraction period.