What is meant by the 'World Economy'?
Context: "Capitalism is the best model for the world economy"
- Mr. SmartypantsLv 73 months agoFavorite Answer
We used to think of our economy vs other countries' economies. Each nation, after all, has its own system, its own rules, etc.
But in the last few decades we've come to realize more and more that the whole world's economy is linked together. For instance, when the US has a recession, the whole world's economy suffers. Foreign trade around the world is so big that we all depend on each other. If a rich country like the US stops buying stuff from your country, you're in trouble.
Since the 1980s we've made a conscious decision in the US to export all our manufacturing overseas. So even American countries depend of favorable trade laws, fewer and gentler tariffs and other 'protectionist' measures, etc. All the big corporations are multinationals now, buying and working and selling all over the world.
So, for instance, we used to think of OUR economy vs Japan or China or the EU. Now we realize that our economy IS Japan's and China's and the EU's. There's no such thing as an "American" washing machine or refrigerator or even car. Even products that proudly advertise AMERICAN MADE have 30-40% foreign content.
- OiyLv 53 months ago
The sum of all economies in the world. It includes also the countries that are not a member of the UN.
- martinLv 73 months ago
In your context it means a type of economy used by the whole world. In reality, the world will be a mixture of capitalism and socialism for as far as anyone can see into the future, with of course the rich folks on top of capitalism, and the ordinary folk getting by with socialism.