All of them hold different but interlinked views and ideas about the occurrence of various economic phenomena across the world. On the other hand, there are five main economic schools of thought that have emerged concerning the global economy that result from these incidences.

As a result, the emergence of such market malpractices affects the global economy in negative ways.įurthermore, the various incidences and aspects that affect the global economy have led to the emergence of theories and concepts that tend to explain their behavior. Furthermore, this has given rise to the emergence of counterfeit goods and products in the market. Apart from that, it is imperative to note that the contemporary surge in the rate of illegal goods and products entering the world market is another important factor that affects the global economy.

Therefore, such aspects skew the economies of the two respective types of countries. Normally, the industrial goods and products that the developed countries produce are given a higher economic value than the primary agricultural products, which are the backbone of the economy in the developing world. There is a significant trade imbalance between developed countries and those categorized as developing. Another important phenomenon that may affect the global economy is the process of evaluating goods and products when devising terms and conditions of international trade. They may include aspects that deal with the control of the monetary terms that are spelled out when a country or international body is lending money to another country. Conversely, one of the most common factors that bind together and influence the trend of the global economy is the presence of human activities, which are related to economic activities. The world economy is measured using various indicators such as the production capacity of a country, the level of usage or consumption of important raw materials as well as the level of expenditures between different departments of the organizations of any nation. However, it is worth noting that the global economy also refers to the individual national economies that make the aggregate economy of the world collectively. The global economy refers to the economy of the whole world in totality, involving the exchange of goods and services in the international arena.

Ha joon chang economics user guide