Name:-Arpita Guha Roy Subject: - B.Ed 106 Economics Topic: - Global Economic Concept Year: - B.Ed First Year

 Name :- Arpita Guha Roy
 Subject :- B.Ed 106 Economics

 Topic :- Global Economic Concept
 Year :- B.Ed First Year
What is a Global Economy?
 Definition: Global economy can be defined as the
sum of activities that take place both within a
country and between different countries. Each
country is a separate unit, with its own industrial
production, labour market, financial market,
resources and environment.
Meaning Of Global Economy
The global economy refers to the interconnected

worldwide economic activities that take place between
multiple countries. Global economy is the exchange of
goods and services integrated into a huge single global
market.
Characteristics of Global
Economy
 Globalisation: Globalisation describes a process by
which national and regional economies, societies,
and cultures have become integrated through the
global network of trade, communication,
immigration, and transportation.
 International trade: International trade is considered
to be an impact of globalisation. It refers to the
exchange of goods and services between different
countries, and it has also helped countries to
specialise in products which they have a comparative
advantage in.
 International finance: Money can be transferred
at a faster rate between countries compared to
goods, services, and people; making international
finance one of the primary features of a global
economy. International finance consists of topics
like currency exchange rates and monetary policy.
 Global investment: This refers to an investment
strategy that is not forced by geographical
boundaries. Global investment mainly takes place
via foreign direct investment (FDI).
Merits Of Global Economy
The Global Economy has many good effects.
1) At first, when the multi-national companies enter into a
country they open factories for their production. So the local people
get job. Thus it helps in eradicating unemployment.
2) Secondly, by the investment of
Capital, the sick industries of a country
become workable. Production increases and
The market get many new products.
3) Thirdly, by the investment of foreign capital a country improves

in various fields. This is regarded as the sum total of the progress of
a country.
Demerits Of Global Economy
 The Global Economy has many bad effects.
1) At first, it is responsible for ‘Brain Drain’. A
man trained in much technical know-how, is taken from a
country to other because of attractive salary. This hampers
the progress of the first country.
2) Secondly, through this the developed
countries show their mastery over the developing countries.
This brings danger to the sovereignty of that country.
3) Thirdly, by bringing loan from IMF or world
Bank a country loses its importance before them. The
country is forced to obey their order.
Benefits of a Global Economy
1) Free trade: Free trade is an excellent method for
countries to exchange goods and services. It also allows
countries to specialise in the production of those goods
in which they have a comparative advantage.
2) Movement of labour: Increased migration of the
labour force is advantageous for the recipient country
as well as for the workers. If a country is going through
a phase of high unemployment, workers can look for
jobs in other countries. This also helps in reducing
geographical inequality.
3) Increased economies of scale: The specialisation
of goods production in most countries has led to
advantageous economic factors such as lower
average costs and lower prices for customers.
4) Increased investment: Due to the presence of
global economy, it has become easier for countries
to attract short-term and long-term investment.
Investments in developing countries go a long way
in improving their economies.
Factors Affecting Global
Economy
 Natural resources
 Infrastructure
 Population
 Labour
 Human capital
 Technology
 Law
CORONAVIRUS:
Impact on Global Economy

Name:-Arpita Guha Roy Subject: - B.Ed 106 Economics Topic: - Global Economic Concept Year: - B.Ed First Year

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Name:-Arpita Guha Roy Subject: - B.Ed 106 Economics Topic: - Global Economic Concept Year: - B.Ed First Year

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 Name :- Arpita Guha Roy

 Subject :- B.Ed 106 Economics

The global economy refers to the interconnected

3) Thirdly, by the investment of foreign capital a country improves

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