World economy

With this ingenious explanation you understand even the most complex relationships of the world economy

World economy, all global (global) and economic relations between states of the earth, based mainly on foreign trade, the movement of capital and labor between economies.

First of all, the world economy is linked to the development of world trade. The processes of international division of labor are intensifying and relate to the increasing exchange of goods and services, capital for the purpose of investing and investing in financial markets, and technical knowledge. Economic globalization was promoted by reducing tariffs and other barriers to trade and liberalizing the financial markets.

However, imbalances between different groups of states also intensified. World economies and world trade are dominated by western industrialized countries, which account for about half of world trade. Regional economic communities such as the European Union, the North American Free Trade Area seek to secure the world market shares of western industrialized countries, while such developing country communities in Latin America, Africa and Asia seek to improve their countries’ position.

The emerging economies have caught up strongly in the global economy. Former Eastern Bloc countries are now members of the European Union or are still in a restructuring process (transition countries). Because of their size, countries like India and especially China play a special role. China is now the second largest economic power in the world after the United States.

Organizations of the world economy

Important international organizations of the world economy are e.g. the International Monetary Fund (IMF or International Monetary Fund, abbreviation IMF) especially for the areas of financial markets and monetary policy, the World Trade Organization (WTO abbreviation) for world trade, the World Bank (International Bank for Reconstruction and Development, abbreviation IBRD) for the promotion of economic development, especially in developing countries through development aid. In addition, there is the Organization for Economic Co-operation and Development (abbreviation OECD) for Western industrialized countries, which now also includes emerging countries and also coordinates the official development assistance of industrialized countries. The Organization of Petroleum Exporting Countries (Organization oft he Petroleum Exporting Countries, abbreviation OPEC) plays a special role.

In addition, there are also political bodies for the world economic dialogue. These include, in particular, the World Economic Summit, the meeting of the seven most important western industrialized countries USA, Germany, Japan, Great Britain, France, Italy and Canada, also called G-7 countries. Developing countries have joined the 77 group to better represent their economic interests. In addition, the BRICS countries came together as a gathering of important emerging countries Brazil, Russia, India, China and South Africa. Better cooperation between developed and developing countries, especially in times of global economic crises and financial crises, is a G-20 forum for the G-7, BRICS, other developed and emerging economies and major international business organizations.

How does the Italian economy work again? How was that again with the Greek crisis? These and other problems of the world economy are now explained quite simply – with two cows.

By this approach one understands immediately political and economic differences of the countries and besides that is still extremely funny and sometimes bitterly bad (because with clichés is not saved).