Global economy

The globalized economy is a system characterized by interconnection between countries and markets, allowing the free flow of goods, services, capital, technology and information around the world. This economic model has been strengthened mainly since the end of the 20th century, driven by advances in communications, transportation and trade openness policies. Main Characteristics of the Globalized Economy Free Trade – Reduction of customs barriers and creation of international agreements to facilitate trade between countries. Integration of Financial Markets – Companies and investors can move capital in different countries, influencing local and global economies. Technological and Digital Development – ​​Internet, automation and artificial intelligence drive innovation and interconnectivity. Global Production Chains – Companies produce components in several countries to reduce costs and increase efficiency (example: a smartphone may have parts manufactured in China, Japan and the USA). Multinationals and Economic Blocks – Corporations expand their operations to several countries, while economic blocks (such as the European Union and Mercosur) facilitate cooperation between nations. Flow of People and Ideas – Greater mobility of workers, tourists and students, promoting cultural and intellectual exchange. Impacts of the Globalized Economy Positive: Access to more varied and cheaper products and services.
Greater technological development and innovation. Economic growth and new job opportunities. Negatives: Increased economic inequality between rich and poor countries. Excessive economic dependence between nations, making global crises more frequent. Environmental impacts, such as pollution and overexploitation of natural resources.