World Economy

Definition

The world economy refers to the sum total production, trade (import/export), distribution, consumption, investment activities among all countries in the world. It encompasses both national economies as well as international economic relations.

Related terms

Gross Domestic Product (GDP): The total value of goods and services produced within a country's borders over a specific period.

Trade Balance: The difference between exports (goods sold abroad) and imports (goods purchased from foreign sources) of a country.

Economic Integration: The process by which countries coordinate their economic policies and reduce trade barriers to encourage greater cooperation between nations.