Question

What are the basic elements of the global economy? What, for you, makes the current world economy distinct from the world economy that existed 100 years ago?

Answer 1

Answer:

the basic elements of the global economy are:

• GDP of the world or the gross world product means production of goods and services all over the world.
• world population which affects the aggregate demand and supply
• international trade means exchange of goods and services among countries  
• balance of payment which includes all the transactions between countries such as trade of goods and services, investment of capital, transfer payments etc.
• exchange rate which decides the value of one currency in terms of another. it affects the economic activities of the country  
• inflation rate which shows the value of the currency and price level in the economy
• unemployment rate which leads to migration of labor fore from one nation to another  

etc. are some important elements of world economy.

The increasing competition in the economy, high inflation rate, unemployment, high trade deficit, increasing volume of international trade, the increasing politics in the world economy and the continuous fluctuation in the economic conditions make the current world economy distinct from the world economy that existed 100 years ago.