Global Economy

Why it matters

• Facilitates the international division of labor and comparative advantage, allowing nations to specialize in efficient production.
• Creates interdependencies that necessitate multilateral cooperation and international regulatory frameworks to manage systemic risks.
• Influences domestic policy formulation, particularly regarding trade balances, currency stability, and foreign direct investment attraction.

How it is asked

Focus on the impact of global supply chain disruptions, the role of international financial institutions in maintaining stability, and the shift toward regional trade blocs versus global integration.