The
term
Global
Economy
refers
to
an
integrated
world
economy
with
unrestricted
and
free
movement
of
goods,
services
and
labour
transnationally.
It
projects
the
picture
of
an
increasingly
inter-connected
world
with
free
movement
of
capital
across
countries,
also.
The
concept
of
a
global
economy
cannot
be
understood
in
isolation.
For
this,
globalization
needs
to
be
defined
first.
Globalisation
may
be
defined
as
the
integration
of
production
and
consumption
in
all
markets
across
the
world.
It
is
a
widely
accepted
view
that
globalization
would
not
only
benefit
all
countries
across
the
world
but
would
also
work
towards
the
betterment
of
the
economy
as
a
whole.
Country
specific
economic
and
political
decisions
are
being
taken
on
a
global
scale
in
today’s
world
with
global
considerations
becoming
more
important
than
narrow
provincial
ideals.
A
global
economy
is
characterized
as
a
world
economy
with
an
unified
market
for
all
goods
produced
across
the
world.
It
thus
gives
domestic
producers
an
opportunity
to
expand
and
raise
capacity
according
to
global
demands
Likewise,
it
also
provides
an
opportunity
to
domestic
consumers
to
choose
from
a
vast
array
of
imported
goods.
A
global
economy
aims
to
rationalise
prices
of
all
products
globally.
A
computer
or
a
cup
of
coffee
would
cost
the
same
amount
of
money
in
both
the
USA
and
India
in
real
terms
if
identical
units
of
both
the
goods
are
purchased.
With
the
reduction
in
the
level
of
tariffs
and
quotas
under
new
WTO
(World
Trade
Organization)
restrictions,
free
flow
of
goods
between
the
developed
and
the
developing
countries
has
become
a
distinct
possibility.
The
emergence
of
Trans
National
Companies
or
Multi
National
Companies
has
been
due
to
the
direct
impact
of
globalization.
Globalisation
has
boosted
productivity
and
capacity
of
these
companies
to
astronomical
highs
because
of
the
stiff
competition
at
the
international
level.
Improvement
in
technology
in
the
developed
countries
such
as
USA
and
Japan
has
permeated
to
those
of
the
less
developed
economies
of
Asia,
Africa
and
Latin
America.
This
has
enabled
the
people
of
the
developing
countries
acquire
requisite
technical
skills
and
knowledge
for
operating
sophisticated
equipments.
These
skills
percolate
throughout
the
economy
and
improves
the
general
productivity
of
the
labor
in
these
countries
thereby
raising
the
income
levels
Sources:
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