Difference of Global and World Economy

1. Differentiate global economy from world economy.
The term "international" or "global economy" is being measured separately and distinguished from
national economies while the "world economy" is simply an aggregate of the separate countries'
measurements. However, when one says world economy or the global economy, it is the economy of all
humans of the world, referring to the global economic system which includes all economic activities
which are conducted both within and between nations, including production, consumption, economic
management, work in general, exchange of financial values and trade of goods and services.
What is the importance of international financial institution to countries of the world?
International Finance Institutions (IFIs) play a vital role in supporting the private sector by encouraging
entrepreneurial initiatives that help developing countries achieve sustainable growth. This also includes
traditional aid and loan programs to governments.
What is the significance of global corporation?
A global corporation possesses strategic resources to operate worldwide and maximizes profits on a
worldwide basis. Its importance lies on leveraging the global environment to approach varying markets in
attaining revenue generation.