Global economy.
Definition
The interconnected system of economic activity spanning all countries, in which goods, services, capital, and labor flow across national borders. Advances in technology, transportation, and trade agreements have made national economies increasingly dependent on one another.
Examples
Real-world.
- 1 An iPhone designed in California, with components from South Korea and China, assembled in China
- 2 OPEC oil production decisions affecting gas prices worldwide
- 3 The 2008 financial crisis in the United States triggering recessions across Europe and Asia