Which of the Following Is a Good Indicator of Economic

question 24

Multiple Choice

Which of the following is a good indicator of economic globalization?

• A) an increase in the ratio of world trade to world economic output
• B) an increase in the ratio of cross-border capital flows to world economic output
• C) an increase in the flow of people across international borders
• D) all of these

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Definitions:

Net Working Capital

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

Capacity Utilization

The percentage of a firm or country's productive capacity that is being used at a given time.

Fixed Assets

Long-term tangible assets that are used in the operations of a business and are not expected to be consumed or converted into cash within a year.

Percentage of Sales Approach

A forecasting method that estimates future financial outcomes based on a percentage relationship between sales growth and other financial accounts.