Question

QUESTION 3 Provide an example that explains the interaction between "global economy and "globalization."

Answer 1

Global Economy : The global economy is the world economy or the worldwide economy. It is all the economies of the world which we consider together as one economic system. Put simply; it is one giant entity.

Global economy indicates the position that every country's economy are dependant on each other.

Globalization: Globalization is the spread of products, technology, information, and jobs across national borders and cultures or in simpler words Globalization is the free movement of goods, services and people across the world in a seamless and integrated manner.

Interaction between global economy and globalization :

Globalization have boosted dependency of every country on global economy. Globalization can also mean that countries liberalize their import protocols and welcome foreign investment into sectors that are the mainstays of its economy.

When country welcomes & open up we can say that process as country making effort to globalize. And once it is globalized their dependency increases more and more with global economy.

In simpler terms both goes hand in hand if there is more dependency on global economy it will soon bring globalization and if there is globalization it will make that country part of global economy.