Global Economics refers to the study of how resources, production, consumption, and wealth creation are distributed among countries around the world. It analyzes international trade patterns, financial systems, investment flows, and policies that shape the global economy.
Related terms
GDP (Gross Domestic Product): The total value of goods and services produced within a country's borders during a specific period. It is an important indicator used to measure economic growth or decline.
Multinational Corporation (MNC): A company that operates in multiple countries by establishing subsidiaries or branches abroad. MNCs contribute significantly to global economics through foreign direct investment, job creation, and international trade.
Comparative Advantage: The ability of a country or region to produce goods or services at a lower opportunity cost than other countries. It forms the basis for international trade as countries specialize in producing what they can efficiently produce.