Global Economy

The global economy refers to the interconnected system of economic activities, transactions, and interactions that occur across international borders. It encompasses the aggregate economic output of all countries, encompassing trade, investment, and financial systems. The global economy is characterized by the flow of goods, services, capital, and labor around the world, influenced by policies, cultural exchanges, technological advancements, and geopolitical factors. This interconnectedness means that events in one country can have widespread impacts on economies elsewhere, highlighting the interdependence of nations. The global economy is often analyzed in terms of international trade agreements, currency fluctuations, global supply chains, and economic development trends. It plays a crucial role in shaping national economies and affects aspects such as employment, income levels, and economic growth.