Global economic system

Definition

The global economic system refers to the network of trade, finance, and production that connects countries around the world. It includes international trade, investment flows, multinational corporations, and global financial institutions.

Related terms

International Monetary Fund (IMF): An international organization that provides financial assistance and policy advice to member countries facing economic difficulties.

World Trade Organization (WTO): An international body that promotes free trade by setting rules and resolving disputes between member countries.

Foreign direct investment (FDI): When a company or individual from one country invests in another country's businesses or assets with long-term financial interests.