The global economy is the sum of all of the markets in the world. It includes global investment, international trade, and a host of other issues. The world’s economies are connected through the global economy and are constantly being influenced by things happening in what may seem like unrelated countries at times.
The most obvious feature of the global economy is that it allows companies to sell products all over the world, connecting people and cultures in ways they couldn’t before. This has led to an unprecedented level of cultural exchange and understanding. However, the global economy can hurt as much as it helps. The triangular trade network in which Europeans shipped manufactured goods to Africa and enslaved Africans back to Europe is a tragic example of globalization gone wrong.
In terms of the economy, the global economy is characterized by its reliance on international trade and finance. Global finance is all of the activities that happen with money, from currency exchanges to monetary policy. The global economy is also impacted by international finance through global investment. This is when private companies go public on a stock market, allowing investors from all over the world to invest in them.
Some of the most important issues facing the global economy are inequality and climate change. The global economy can also be detrimental for local communities as businesses move jobs to lower-cost markets. This can lead to a loss of jobs for workers and the decline of local infrastructure such as schools, hospitals, and roads.