Refers to economies around the world being highly connected through trade networks where goods and services flow between countries with ease due to advancements in transportation and communication technologies.
Related terms
Trade Agreements: Formal agreements between countries aimed at reducing barriers (such as tariffs) on imports/exports which promote more fluid exchange of goods/services between interconnected economies.
Multinational Corporations: Large companies that operate in multiple countries, taking advantage of interconnected economies to expand their reach and maximize profits.
Supply Chain: The sequence of processes involved in producing and distributing goods or services, often spanning multiple countries. It showcases how different parts of the world contribute to a product's creation and distribution.