The term "world economy" refers to the economic situation of all of the world's countries. It is common to limit discussion of world economy exclusively to human economic activity. 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.
The global financial system is the financial system consisting of institutions and regulators that act on the international level, as opposed to those that act on a national or regional level. The main players are global institutions, such as International Monetary Fund, World Bank, and the Bank for International Settlements; national agencies and government departments (e.g., central banks and finance ministries); private institutions acting on the global scale (e.g., banks, hedge funds), and regional institutions such as the Eurozone.
Although international trade has always existed, some thinkers argue that a number of trends associated with globalization have caused an increase in the mobility of people and capital since the last quarter of the 20th century. Today, these trends have bolstered the argument that capitalism should now be viewed as a true world system, given that all national economies trade with capitalist states and are therefore influenced by capitalist policies.
Globalization refers to the increasing global relationships of culture, people, and economic activity. It is generally used to refer to economic globalization: the global distribution of the production of goods and services, through reduction of barriers to international trade such as tariffs, export fees, and import quotas; and the reduction of restrictions on the movement of capital and on investment. Globalization may contribute to economic growth in developed and developing countries through increased specialization and the principle of comparative advantage.
Singapore embraced globalization and became a highly developed country