The Global Economy
Like any economy, the global economy is a system in which transactions (exchanges of goods and services for money) take place—in this case, in the form of foreign trade and international finance. Several factors make these transactions more complicated than transactions in a national economy. These factors center on the many differences—in currencies, laws, languages, customs, and cultures—among nations.
In this part, we look at the workings of foreign trade, international finance, the global marketplace, and developing economies. We also touch upon topics such as globalization, trade blocs, and the capitalist trends that have emerged in China. Our goal in this part is to understand why nations do business—and refuse ...