Which of the Following Has Most Contributed to the Globalization

question 72

Multiple Choice

Which of the following has most contributed to the globalization of the economy?

• A)the decreased importance of agriculture
• B)reductions in transportation and communication costs
• C)the shift toward a market economy in China
• D)tariffs and trade barriers
• E)the decline in the relative importance of manufacturing

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Definitions:

Lease Term

The fixed, non-cancellable period during which a lessee has the right to use an asset, with the option for renewal under specific conditions.

Operating Lease

A contract allowing for the use of an asset without ownership, generally resulting in periodic lease payments and not recorded on the lessee's balance sheet under certain conditions.

Capital Lease

A lease agreement that is classified as a purchase by the lessee for accounting purposes, based on criteria such as ownership transfer or a bargain purchase option.

Asset Turnover Ratio

A financial ratio that measures the efficiency of a company's use of its assets to generate sales revenue, calculated as total revenue divided by average total assets.