World Economy: Mastering the Global Economy, a Comprehensive Guide to Understanding and Thriving in the World of International Finance and Trade

By Fouad Sabry

What is World Economy

The world economy or global economy is the economy of all humans in the world, referring to the global economic system, which includes all economic activities conducted both within and between nations, including production, consumption, economic management, work in general, exchange of financial values and trade of goods and services. In some contexts, the two terms are distinct: the "international" or "global economy" is measured separately and distinguished from national economies, while the "world economy" is simply an aggregate of the separate countries' measurements. Beyond the minimum standard concerning value in production, use and exchange, the definitions, representations, models and valuations of the world economy vary widely. It is inseparable from the geography and ecology of planet Earth.

How you will benefit

(I) Insights, and validations about the following topics:

Chapter 1: World economy

Chapter 2: Economy of Canada

Chapter 3: Economy of Chad

Chapter 4: Economy of Guinea

Chapter 5: Economy of Indonesia

Chapter 6: Economy of Sierra Leone

Chapter 7: Economy of Tanzania

Chapter 8: Economy of Thailand

Chapter 9: Economy of the United Kingdom

Chapter 10: Economy of Ukraine

Chapter 11: Economy of the United States

Chapter 12: Economy of Venezuela

Chapter 13: Gross world product

Chapter 14: Economy of Mozambique

Chapter 15: Economy of France

Chapter 16: Economy of Australia

Chapter 17: Economy of India

Chapter 18: Economy of China

Chapter 19: Economic history of Italy

Chapter 20: Economy of Beijing

Chapter 21: Economic policy of the Donald Trump administration

(II) Answering the public top questions about world economy.

(III) Real world examples for the usage of world economy in many fields.

Who this book is for

Professionals, undergraduate and graduate students, enthusiasts, hobbyists, and those who want to go beyond basic knowledge or information for any kind of World Economy.

• Language: English
• Publisher: One Billion Knowledgeable
• Release date: Feb 10, 2024

Book preview

Chapter 1: World economy

The term world economy (also global economy) refers to the interconnected economic systems of all nations and encompasses all production, consumption, economic management, work in general, exchange of monetary values, and trade of goods and services. An international or global economy is one that is measured independently of and in contrast to national economies, while a world economy is merely an aggregate of the individual national economies. Definitions, representations, models, and valuations of the global economy vary greatly beyond the baseline with regards to value in production, use, and exchange. It cannot be understood apart from Earth's physical features and ecosystems.

World GDP per capita between 1500 and 2003

Even when there is no efficient market to help valuate certain goods or services, or when a lack of independent research, genuine data, or government cooperation makes establishing figures difficult, it is common to limit questions of the global economy exclusively to human economic activity, and the global economy is typically judged in monetary terms. Common examples include drugs and other items sold on the black market that are technically part of the global economy but have no legitimate market.

Economists do not typically use the current or official exchange rate to convert the monetary units of this market into a single unit for the global economy, as exchange rates do not closely reflect worldwide value in situations where the volume or price of transactions is closely regulated by the government, for example.

Instead, the concept of purchasing power parity is used to convert local currency market valuations to a common currency. The following is an example of the methodology used to estimate global economic activity expressed in real US dollars or Euros. However, there are numerous other ways to measure and discuss the global economy. For instance, it is not clear what percentage of the 7.8 billion people on Earth (as of March 2020) have the vast majority of their economic activity reflected in these prices.

According to Maddison, China and India were the world's two most important producers until the middle of the nineteenth century. Shares shifted to the Western Hemisphere as the Industrial Revolution swept through Western Europe and Northern America. The economies of Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, Mexico, South Korea, Russia, Saudi Arabia, Spain, Turkey, the United Kingdom, the United States, and the European Union have all reached $2 trillion in nominal or PPP terms by 2023.

Countries or territories by GDP (PPP) per capita in 2021.

Countries by total wealth (trillions USD), Credit Suisse

(Purchasing power parity exchange rates) Gross World Product (GWP): $59.38 trillion (2005 estimated), $51.48 trillion (2004), $23 trillion (2002). Global GDP is the sum of all national GDPs around the world. Global GDP should be included in the GWP calculation. In addition, GWP confirms that trade in both directions is balanced. When looking at the world as a whole, imports and exports cancel each other out, so this also equals the global GDP (GDP). The nominal GWP in 2013 was around US$75.59 trillion, as reported by the World Bank. The CIA's World Factbook estimates that in 2017, the GWP was around US$80.27 trillion in nominal terms and around USD$127.8 trillion in purchasing power parity (PPP). According to the World Factbook, in 2017 the PPP GWP was about Int$17,500 per