Global Economy
Definition
The global economy is an interconnected marketplace encompassing every nation's economic activities, including trade policies, exchange rates, taxation laws etc. It's essentially how all economies around world interact with each other.
Analogy
Think about playing an online multiplayer video game like Fortnite where players from all around the world compete against each other but also collaborate at times. Each player represents their own economy while their interactions represent international trade and cooperation within global economy.
Related terms
Globalization: The process by which businesses or other organizations develop international influence or start operating on an international scale.
International Trade: Exchange of goods and services between countries through import-export activity.
Foreign Direct Investment (FDI): An investment made by a firm or individual in one country into business interests located in another country.
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