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Global Economy

Definition

The global economy refers to the interconnected system of economic activities that spans across countries and regions, involving the production, trade, and consumption of goods and services on a global scale.

Analogy

Think of the global economy as a massive web of financial transactions that connects people, businesses, and governments worldwide. It's like a giant game of economic "tag" where money is constantly being passed from one player to another.

Related terms

Globalization: The process by which businesses and organizations develop international influence or start operating on an international scale.

Trade: The exchange of goods and services between countries or regions.

Interdependence: A situation in which countries rely on each other for resources, markets, or technology in order to function in the global economy.