Which term refers to the way economies across the globe are linked?

• A. Economy
• B. Globalization
• C. Global economy
• D. World trade

Answer: (C)

The way economies across the world are linked is best described by the global economy. This term refers to the integrated system of economic activity that spans borders—production, trade, investment, and financial flows that connect countries. Globalization is the process that intensifies these links, but it describes the trend, not the entire system. World trade, while important, is just one part of the picture, focusing on cross-border exchanges of goods and services rather than the full network of economic activity. An economy on its own is a country’s internal system, not the international web. So the global economy captures the interconnected, worldwide nature of modern economic activity.