What is the global economy?

The concept of global economy represents the current economic system. A system that is based on competition and in the use of new technologies. The global economy thus implies a liberalization of the barriers that separate markets.

Thus, this definition of the global economy is therefore closely related to the globalization and the world in which we live today, marked exponentially by the presence of large business corporations, great competitiveness and distribution and best before date of large-scale products.

3 characteristics of the global economy

The global economy is based on the growth of trade as a way to achieve high production volumes. However, far from reality, control of the global economy depends on a small number of multinational companies that take charge of a very high part of the production of the entire industrial fabric, giving rise to great exports. Here we look at other characteristics of the global economy, no less important:

  • Along with this globalization we are talking about, the internacionalizaci√≥n It is another of the aspects that define this global economy.
  • As a consequence of this internationalization, the global economy implies an exponential growth of communications wherever it passes.
  • The global economy implies the movement of people, considered as human resources, as well as goods, which are what have made our communities communities of people and services.

Is the global economy as good as it looks?

Although we can define the advantages of the global economy, also considered global, there are certain aspects that should be taken into account and that are the result of its activity. We talk about the impact of the global economy on society.

The reality is that the global economy supposes a transformation of some sectors, and it is that where it passes, in one way or another it has implied a reconversion, despite the prospects for improvement that it presented, with the purpose of adapting to those international markets, and this in the end also ends up taking a toll on people's income and therefore on the lifestyle they can lead.

As a consequence of this previous point, it has also been proven how culture has diminished with respect to the global economy since cultural minorities have seen their voice change.

What are the prospects for the global economy?

As for the future of the global or world economy, we face an absolute challenge ahead. The global economy faces inclusion, due to the inequalities that it has been generating in the social stratum.

It should also be taken into account that the environmental impact that this global economy has had has harmed our natural environment, so it must seek solutions that end such important issues as global warming. According to some experts in the field, imposing taxes on certain companies that emit carbon dioxide would be a good solution for them to change their policies.

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