Global Economy

Global Economy was a concept associated with the twentieth-century evolution of financial markets and institutions, where traditional geographic boundaries did not restrict economic transactions and consumer activities. The global economy applied to the increasingly international transaction characteristics of banks, industries, businesses, and other economic institutions. A global economy of financial markets was attributed to international deregulation of financial markets; technological advances to provide for the careful monitoring of world markets; and increased institutionalization of worldwide economic institutions.

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In a global economy investors and lenders viewed international loans and securities as comparable to domestic or local transactions. Banks and other financial institutions in a global economy participated in both foreign and domestic markets. A global economy was encouraged by advances in data-processing and telecommunications monitoring, liberalization of worldwide capital funds, deregulation of local capital markets, and increased international competition among markets and economic institutions.

Reference

"Global Economy." Gale Encyclopedia of U.S. Economic History. Vol. 1. Detroit: Gale, 1999. 377-378. Gale Virtual Reference Library.