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We Consider As One Giant Economic System

The document discusses several key aspects of the global economy: 1) It defines the global economy as the combined economies of all countries worldwide, forming one giant economic system that includes everything bought, sold, and owned on Earth. 2) It examines major challenges facing the global economy in the 21st century, such as trade disputes, tightening financial conditions, and climate risks that could disrupt economic activity. 3) International trade, a core part of the global economy, allows countries to specialize and trade surplus goods for resources they need, benefiting development and prosperity.

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Ginalyn Rodriguez
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130 views3 pages

We Consider As One Giant Economic System

The document discusses several key aspects of the global economy: 1) It defines the global economy as the combined economies of all countries worldwide, forming one giant economic system that includes everything bought, sold, and owned on Earth. 2) It examines major challenges facing the global economy in the 21st century, such as trade disputes, tightening financial conditions, and climate risks that could disrupt economic activity. 3) International trade, a core part of the global economy, allows countries to specialize and trade surplus goods for resources they need, benefiting development and prosperity.

Uploaded by

Ginalyn Rodriguez
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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JOHN CARLO S.

LOBENDINO BSOAD 1A

LEA BOLENA

JEN POTIAN

TITLE: THE GLOBAL ECONOMY

 GLOBAL ECONOMY
 Is the economy of the humans of the world, The economy of every country which
we consider as one giant economic system.
 It includes everything we all buy, sell and own on this planet.
Put simply: the GLOBAL ECONOMY is one giant ENTITY
 It also provides an analysis of the major problems facing the global economy in
the 21st Century, and provides an analysis of the financial crisis and the rise of
powerful trading blocs.

GLOBAL ECONOMY HAS A LOT TO OFFER

This includes the FF:

 Impact on Jobs and Pricing


-For starters, the proponents for the expansion of economic globalization argue
that it creates jobs and lowers the prices of goods.
 Capital Flight

-Adding to this, opponents argue that economic globalization has caused capital flight,
the large-scale departure of companies, assets, and wealth from a country due to
economic instability or the opportunity for cheaper production.

Global Economy faces Risk that can cause Recession:

 The global Economy is facing a confluence of risks which could severely disrupt economic
activity and inflict significant damage on longer-term development prospects.
 Global economy Risks includes:
Escalation of trade disputes, an abrupt tightening of global financial
conditions, and intensifying climate risk.
Global Marketing

 Global Marketing refers to planning, producing, or creating, placing


and promoting a company’s products or services in the Global
Market
 In today’s Global Economy more and more businesses are selling
beyond their borders. So the need of effective Global Marketing
strategies increased significantly

INTERNATIONAL TRADE

 Refers to the exchange of products and services from one country to another

International trade consist of goods and services in two directions

 Imports
 Exports.

Why does International trade exist?

 By developing and exploiting their scarce resources Countries can produce


surplus, and trade this for the resources they needed. International trade is at the
heart of the Global economy and is responsible for much of the development and
prosperity of the modern industrialized world.

We import Goods And Services for several reasons. Below are some reasons

 Price
 Quality
 Availability
 Demand

. Advantage and Disadvantages of International Trade.

 Comparative advantage
 Economies of scale
 Transfer of technology
 Jobs
 Disadvantages of International Trade.
 Over-Specialization
 New companies
 Undeveloped Countries

What is the Difference between Goods and Services?

 Goods are the physical objects while services is an activity or performing work for
others

What is the process of producing Goods and Services?

 Production is the process of creating products and services that a firm sells to its
market.

4 types of Goods.

 Private Goods
 Public Goods
 Common Resources
 Club Goods

How do you produce Goods and Services?

 Before goods and services can be distributed to households and consumed, they
must be produced by someone or by some business organization
 Goods are Tangible objects that satisfies people’s want
 Services are an action that a person does for someone else.
 Money is a medium of exchange that isn’t use directly
 WTO or World Trade Organization is the only global international organization
dealing with the rules of trade between nations.

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