"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."
Study of the global economic system, including international trade, markets, and finance, and the role of global governance in managing economic issues.
Globalization: The process by which economies, cultures, and societies become more integrated through increased cross-border flows of goods, services, capital, people, and ideas.
International trade: The exchange of goods and services across borders, which is facilitated by trade policies, agreements, and organizations, such as the World Trade Organization (WTO).
Foreign direct investment (FDI): The investment made by a company or individual in a foreign country with the intention of establishing a lasting interest and control over its business operations.
Multinational corporations (MNCs): Large corporations that operate in multiple countries, which play a major role in shaping the global economy.
International finance: The set of transactions and financial institutions that facilitate the flow of capital across borders, including foreign exchange markets, investment banks, and international financial organizations, such as the International Monetary Fund (IMF) and the World Bank.
Economic development: The process by which countries improve their economic, social, and environmental well-being through various policies and practices, such as sustainable development, human rights, and poverty reduction.
Regional integration: The process by which neighboring countries coordinate their economic policies and practices, which can lead to increased trade, investment, and social cooperation.
Global governance: The system of institutions, norms, and rules that govern the behavior of states, MNCs, and other actors in the global economy.
Economic inequality: The unequal distribution of wealth, income, and opportunities across individuals, regions, and countries.
Sustainable development: The goal of achieving economic growth while preserving the environment and social well-being for future generations.
Free Market Global Economy: This system is based on competition and the freedom for individuals and businesses to produce and trade goods and services, with limited government intervention.
Command Global Economy: This system focuses on a centrally planned, government-controlled economy, where the state dictates production, distribution, and prices.
Mixed Global Economy: This system is a blend of free-market principles and government control, where the state regulates and provides essential services to ensure effective competition and promote social justice.
Socialist Global Economy: This system emphasizes public ownership of important industries and state control over resources, with the goal of promoting equality and social benefits.
Capitalist Global Economy: This system is based on private property ownership, profit maximization, and the free exchange of goods and services, with limited government intervention.
Green Global Economy: This system emphasizes environmental sustainability and green technologies, with the goal of reducing greenhouse gas emissions and promoting eco-friendly practices.
Informal Global Economy: This system refers to a shadow economy that exists outside of formal regulations, where agents operate in underground markets, often engaged in illicit activities.
Digital Global Economy: This system emphasizes online transactions, e-commerce, and the use of technology to facilitate global trade and exchange.
Sharing Economy: This system emphasizes sharing and collaboration between individuals, often facilitated by digital platforms, such as ride-sharing or home-sharing services.
Circular Economy: This system prioritizes resource efficiency and regenerative practices, with the goal of reducing waste and maximizing the use of natural resources.
"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."