Global Economics
In today’s interconnected world, no economy stands alone. Global economics explores how countries interact through trade, investment, development, and international policy — revealing how decisions in one part of the world can shape lives and markets everywhere else. For A-level students, it’s a chance to connect classroom theory with real-world events, from currency crashes to global trade disputes, and to understand the bigger picture behind headlines.
This section of The Econ Vault is designed to help you think beyond your exam board. Through accessible explainers, case studies, and insights into global institutions like the IMF and WTO, you’ll deepen your knowledge of issues like globalisation, development strategies, and international inequality. Whether you're preparing for university or just keen to explore economics on a global scale, this is where theory meets the world.
🧠 Think Like an Economist
Who benefits most from global trade?
Is free trade always fair?
Should countries protect their industries, or open up to competition?
This section gives you the tools and case studies to explore those questions with real-world insight.
🌐 Globalisation & Trade
What is Globalisation?
Globalisation is the growing integration of economies, societies, and cultures through trade, investment, technology, and migration. In economics, we examine how this shapes the movement of goods, services, capital, and people across borders.
💡 Did You Know?
Over 60% of global GDP is linked to trade flows — meaning most of what we buy or sell is part of a global chain.
✅ Benefits
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Encourages efficiency and specialisation
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Increases innovation and consumer choice
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Can lift countries out of poverty (e.g. Vietnam, South Korea)
🤝 Trade & Global Cooperation
Trade is central to globalisation. Agreements like the EU single market or ASEAN free trade zone reduce barriers and encourage economic cooperation. Global institutions like the WTO help regulate trade, prevent disputes, and promote fair play.
But trade is political. Disputes like the US-China tariff war or post-Brexit negotiations show how countries often act in self-interest.
⚠️ Challenges
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Rising inequality within and between countries
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Over-reliance on global markets
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Environmental impacts and job losses in some sectors
💥Global Economic Crises
Understanding Crises
From financial meltdowns to debt defaults, global economic crises reveal the vulnerabilities within our systems. They often spread quickly between countries, causing inflation, job losses, and social unrest. Studying past crises helps us understand how economies recover—and how to prevent future ones.
🧠 Think About It
What causes economic crises to spread so quickly in global markets?
Should governments always step in—or let markets fix themselves?
