"The world economy or global economy is the economy of all humans of the world, referring to the global economic system, which includes all economic activities which are conducted both within and between nations, including production, consumption, economic management, work in general, exchange of financial values and trade of goods and services."
Understanding the dynamics of the global economy and trade systems, including the interconnectedness of nations and the impact of globalization on different countries and populations.
International Trade: This topic covers the exchange of goods and services across international borders, including tariffs and trade agreements between countries.
Comparative Advantage: This concept explains why countries specialize in producing certain goods and trade with each other to increase their overall output.
Globalization: This phenomenon involves the growing interconnectedness of economies, cultures, and societies across the world through trade, technology, and migration.
Foreign Direct Investment: This refers to investments made by companies in foreign countries, either to acquire new resources or to expand their market reach.
Exchange Rates: This topic deals with the value of one currency compared to another and how fluctuations impact global trade and investment.
Multinational Corporations: These are businesses that operate in multiple countries, and they play a significant role in shaping the global economy.
World Trade Organization: This organization is responsible for setting rules and resolving disputes related to international trade between its member countries.
Free Trade Agreements: These agreements between countries aim to reduce barriers to trade by eliminating tariffs, quotas, and other trade restrictions.
Global Economic Development: This topic focuses on the economic growth and development of countries across the world, including issues like poverty, inequality, and sustainability.
Emerging Markets: These are economies with high growth potential, often located in developing countries, that represent new opportunities for global businesses and investors.
Protectionism: This refers to policies that restrict or block imports to protect domestic industries or jobs, often leading to trade tensions between countries.
Intellectual Property Rights: These are legal protections for ideas, inventions, and creative works that can impact global trade and investment.
Regional Economic Integration: This involves cooperation between countries within a specific geographic region to promote trade and economic growth.
Financial Markets: These are global markets for stocks, bonds, currencies, and other financial instruments that impact the global economy.
Economic Indicators: These are statistics that measure the health and growth of the economy, such as GDP, inflation, and employment.
Free Trade: It is a policy that allows goods and services to move freely across international borders without any barriers, including tariffs, quotas, and subsidies.
Protectionism: Protectionism is an economic policy that aims to protect domestic industries from foreign competition by imposing tariffs, quotas, and other trade barriers.
Economic Integration: It is the process of merging two or more economies into a single, larger economy that is more efficient and effective.
Multinational Corporations: Multinational corporations are companies that operate in multiple countries and have a global presence.
Globalization: Globalization is the process of integrating economies, cultures, and societies across the world through the exchange of goods, services, and ideas.
Outsourcing: Outsourcing is the practice of hiring an external company or individual to perform tasks or provide services that are typically done in-house.
Foreign Direct Investment: Foreign direct investment is when a company invests in another country by creating a subsidiary, opening a branch office, or purchasing assets or equity in a foreign company.
Import-Export: Import-export refers to the exchange of goods and services between nations.
Fair Trade: Fair trade is a movement that seeks to ensure that producers in developing countries receive fair prices for their goods and services.
Regional Trade Agreements: Regional trade agreements are agreements between two or more countries in a geographic region that eliminate trade barriers and facilitate the free flow of goods and services.
"In some contexts, the two terms are distinct 'international' or 'global economy' being measured separately and distinguished from national economies, while the 'world economy' is simply an aggregate of the separate countries' measurements."
"Beyond the minimum standard concerning value in production, use and exchange, the definitions, representations, models and valuations of the world economy vary widely."
"It is common to limit questions of the world economy exclusively to human economic activity, and the world economy is typically judged in monetary terms."
"Even in cases in which there is no efficient market to help valuate certain goods or services, or in cases in which a lack of independent research, genuine data or government cooperation makes establishing figures difficult, economists do not typically use the current or official exchange rate to translate the monetary units of this market into a single unit for the world economy."
"Rather, market valuations in a local currency are typically translated to a single monetary unit using the idea of purchasing power."
"According to Maddison, until the middle of the 19th century, global output was dominated by China and India."
"As of 2023, the following 18 countries or collectives have reached an economy of at least US$2 trillion by GDP in nominal or PPP terms: Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, Mexico, South Korea, Russia, Saudi Arabia, Spain, Turkey, the United Kingdom, the United States, and the European Union."
"Despite high levels of government investment, the global economy decreased by 3.4 percent in 2020 in relation to the COVID-19 pandemic, an improvement from the World Bank's initial prediction of a 5.2 percent decrease."
"Cities account for 80% of global GDP, thus they faced the brunt of this decline."
"The world economy increased again in 2021 with an estimated 5.5 percent rebound."