Which of the following constitutes the best evidence for globalization?
A) 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.
B) 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.
C) 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.
D) 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.
E) 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.

Question

Quizplus · Accepted Answer

Option B shows how a natural event in one country can directly impact a company in another country, affecting its production and pricing. This interdependence and interconnectedness of economies is a key aspect of globalization. Options A and C involve internal factors within one country and do not demonstrate globalization. Option D describes a situation where a country is developing its own resources, which is not necessarily indicative of globalization. Option E also describes an internal policy decision within one country and does not demonstrate globalization.

Which of the Following Constitutes the Best Evidence for Globalization