Question

How do you differentiate between International Economics and Global Economy? Explain each in a short essay and show the difference using the appropriate terminology, examples, theories and concepts citing from scholars and researcher in these areas.

Answer 1

Answer:

1) International economics

International economics is the field that concerned with economic interactions of countries and effect of international issues on the world economic activity. It studies  the economic and political issues that related to international trade and finance . It deals with the economic activities of various countries and their consequences . It also refers to study of international force that influence the domestic conditions of an economy and shape the economic relationship between countries .And also it studies the economic interdependence between countries and its effects on economy .The economic activities between nation differ from activities with in nations. An examples of international economics is the factor of production are less mobile between countries due to various restrictions imposed by governments.

The scope of international economics is wide as it includes various concepts ,such as globalisation, pattern of trade, gains from trade, balance of payments, and FDI. Apart from this, international economics describe production, trade and investment between countries.

2) Global economy

Global economy is also known as world economy .It is the economy of all humans of the world . It us considered as the international exchange of goods and services that is expressed in monetary units of account . Global economy is the system of trade and industry across the world tat has emerged due to globalisation .It is the way in which countries economies have been developing to operate collectively as one system .

Examples of global economy as of 2017, the following 15 countries or regions have reached an economy of at least US $2 trillion by GDP in nominal terms . The countries are Brazil, China, France, Germany, India, Indonesia, Italy, Japan, south korea, Mexico, Russia, Turkey, the united kingdom, the united states and the European unions