Fulgencio, Jayvee P.

3CE-A
“Characterizing the Global Economy”
With human life being threatened, COVID-19 has inflicted fatal damage on the world
economy. This has been clear to countries who have been providing weak healthcare systems,
whereas the lack of the capacity to cater to the needs of the citizens has been a weakness. But
this does not end here, the pandemic has also affected trade and tourism between countries. To
protect the people, anything that is related to transport between countries has been
discontinued to prevent further damages. Since it is a fight with what the naked eye cannot see,
aspects of labor have also been affected drastically, limiting the people from having contact with
one another, clearly COVID-19 took a toll on the overall economy of the world.
Globalization being the fuel for development and advancements, the global economy is
evident within this era. The concept of clustering in countries and having specialties is hand-in-
hand with labor and trade. Labor reflects on the need for manpower to produce products, while
trade is the process of exchange itself. Take for example India is known to be the biggest
producer of bananas, knowing dominant of their land is fertile, this has been the focus of their
specialization. Now, to make certain agricultural plans feasible, manpower is necessary, thus
farmers are being hired. Then, knowing that the initial plan is to produce and to export, once
harvest season approaches, the trade of goods would then be evident.
The global economy is primarily driven by two things, trade, and labor. Labor manifests
inside the country while trade happens between countries. Now, if one is to be identified as the
most important factor that drives the economy, that would be labor. Focusing on labor also
means that there is a focus on both assessment and preparation of the country. These things
are necessary to produce goods and services, as they can discern their specialty. Moreover, as
stated that the economy is measured by its gross domestic product, which primarily tackles the
measurement of the value of the output of all goods and services in a country, labor itself would
be seen significant to raise this measurement.