Palm oil, an edible vegetable oil used in processing packaged food products, is obtained from the fruit of the oil palm tree, grown only in the tropics. Which of the following explains how global demand for palm oil has proved beneficial and detrimental for countries such as Indonesia and Malaysia?

Question

Group of answer choices

Palm oil exports aided in increasing the wealth of the two countries but also increased the diversity of plants in the two countries.

Palm oil exports provided substantial corporate profits, but the growth in the industry resulted in heavy deforestation in both countries.

Palm oil exports provided substantial corporate profits, but the process led to high rates of unemployment for farmworkers at harvest time.

Palm oil exports provided substantial corporate profits, but increased government subsidies to palm oil farmers led to increased poverty in the two countries.

Palm oil exports provided increased income to the governments of Indonesia and Malaysia, but the number of farmers employed on palm oil plantations decreased in the two countries.

Answer 1

The correct choice that explains how global demand for palm oil has proved beneficial and detrimental for countries such as Indonesia and Malaysia is:

Palm oil exports provided substantial corporate profits, but the growth in the industry resulted in heavy deforestation in both countries.

This option highlights the economic benefits of palm oil exports through corporate profits while also acknowledging the significant environmental impact, particularly deforestation, that has accompanied the expansion of the industry in these countries.