Global

Economy
Ivy Charrize Caseres
Angel Braceros

Class 3A
 The global economy refers to
the interconnected worldwide
economic activities that take
What is global place between multiple
Economy? countries. These economic
activities can have either a
positive or negative impact on
the countries involved
 How does the global
economy work?
The global economy has
changed significantly over the
past few decades, in the way
that it is organized and
governed by collaborating
nations. These changes have
repercussions that not only
affect the flow of goods and
services between countries, but
also the movement of people.
Global economy
charateristics
 The global economy comprises several characteristics, such as:

Globalization
- It describes a process by which national and regional
economies, societies, and cultures have become integrated
through the global network of trade, communication,
immigration, and transportation.
 The global economy comprises several characteristics, such as:

International trade
- It refers to the exchange of goods and services between
different countries, and it has also helped countries to specialize
in products which they have a comparative advantage in.
 The global economy comprises several characteristics, such as:

International finance
- Money can be transferred at a faster rate between countries
compared to goods, services, and people, making international
finance one of the primary features of a global economy.
 The global economy comprises several characteristics, such as:

Global investment
- This refers to an investment strategy that is not constrained by
geographical boundaries.
Why global
economy is
important?
The global economy is innately tied to trade, it allows countries
around the world to obtain any resource they may want, whether
or not it is produced on the home front. This availability of
resources is facilitated through trade.

Why is the global economy is important?

The global economy allows us to eat the foods we want all year
round and buy clothing and gadgets at lower prices. During
times of peace, it is beneficial in a global economy, to see other
nations succeed.

Why is the global economy is important?

Overview on how
global economy
works
 Overview on how global economy works

Providing a foundation Raising productivity

for worldwide and efficiency across
economic growth countries
Helping in the development of
Encouraging underdeveloped countries by
competitiveness allowing them to import capital
between countries in goods and export primary
various markets goods
Benefits of global
economy
 Benefits of global economy

Free trade
- It also allows countries to specialise in the
production of those goods in which they have a
comparative advantage.
 Benefits of global economy

Movement of labor
- Increased migration of the labor force is
advantageous for the recipient country as well as
for the workers
 Benefits of global economy

Increased economies of scale

- The specialization of goods production in most
countries has led to advantageous economic
factors such as lower average costs and lower
prices for customers.
 Benefits of global economy

Increased investment
- Due to the presence of global economy, it has
become easier for countries to attract short-term
and long-term investment.
Factors affecting
global economy
 key factors that influence and affect how well the global
economy works

Natural Resources. Technology

Infrastructure law

Population

Labor
Thank you
for
listening!