Friday, October 4, 2013

World economy

The world economy, (or) global economy, generally refers to the economy, which is based on economies of all of the world's countries, national economies. Also global economy can be seen as the economy of global society & national economies – as economies of local societies, making the global one. It can be evaluated in many kinds of ways. For sense, depending on the model used, the valuation that is arrived at can be represented in a certain currency, such as 2006 US dollars (or) 2005 euros.

It is inseparable from the geography & ecology of Earth, & is therefore somewhat of a misnomer, since, while definitions & representations of the "world economy" vary widely, they must at a minimum exclude any consideration of resources (or) value based outside of the Earth. For examp, while attempts could be made to calculate the value of currently unexploited mining opportunities in unclaimed territory in Antarctica, the same opportunities on Mars would not be considered a part of the world economy—even if currently exploited in some way—& could be considered of latent value only in the same way as uncreated intellectual property, such as a previously unconceived invention.

Beyond the minimum standard of concerning value in production, use, & exchange on the planet Earth, definitions, representations, models, and valuations of the world economy vary widely.
It is common to limit questions of the world economy exclusively to human economic activity, & the world economy is typically judged in monetary terms, even in cases in which there is no efficient market to help valuate certain goods (or) services, or in cases in which a lack of independent research (or) government cooperation makes establishing figures difficult. Typical examples are illegal drugs & other black market goods, which by any standard are a part of the world economy, but for which there is by definition no legal market of any kind.

However, even in cases in which there is a clear & efficient market to establish a monetary value, economists do not typically use the current (or) official exchange rate to translate the monetary units of this market into a single unit for the world economy, since exchange rates typically do not closely reflect worldwide value, for examp in cases where the volume (or) price of transactions is closely regulated by the government.
Rather  market valuations in a local currency are typically translated to a single monetary unit using the idea of purchasing power(PP). This is the method used below, which is used for estimating worldwide economic activity in terms of real US dollars/ (or) euros. However, the world economy can be evaluated & expressed in various more ways. It is unclear, for examp, how many of the world's 7.01 billion people have most of their economic activity reflected in these valuations.

In 2011, the largest economies in the world with more than $2 trillion, €1.25 trillion by nominal GDP are the United States, China, Japan, Germany, France, the United Kingdom, Brazil, & Italy. The largest economies in the world with more than $2 trillion, €1.25 trillion by GDP (PPP) are the United States, China, Japan, India, Germany, Russia, , & France United Kingdom, Brazil, France

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