Related topics: net profit

Fairer finance could speed up net zero for Africa by a decade

Leveling up access to finance so that poorer countries can afford the funds needed to switch to renewable energy could see regions like Africa reaching net zero emissions a decade earlier, according to a study led by UCL ...

Coronavirus puts brakes on global plastics production

Global plastics production declined slightly in 2020 as a result of the economic fallout from the coronavirus pandemic, only the third time since World War II that output has fallen, an industry body said Thursday.

The psychological cost of corruption in developing countries

Corruption is a crime which slows economic growth, undermines development, and causes inequality. With a cost to the global economy estimated at around US$2.6 trillion (£1.8 trillion) a year, it is often linked to politics ...

CO2 emissions set to surge, IEA warns

Climate-changing CO2 emissions are set to surge by the second-biggest amount in history this year as the global economy recovers from the COVID-19 pandemic, the IEA warned Tuesday, days before a major climate summit.

Study exposes global ripple effects of regional water scarcity

Water scarcity is often understood as a problem for regions experiencing drought, but a new study led by Tufts University researchers finds that not only can localized water shortages impact the global economy, but changes ...

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World economy

The world economy can be evaluated in various ways, depending on the model used, and this valuation can then be represented in various ways (for example, in 2006 US dollars). It is inseparable from the geography and ecology of Earth, and is therefore somewhat of a misnomer, since, while definitions and representations of the "world economy" vary widely, they must at a minimum exclude any consideration of resources or value based outside of the Earth. For example, while attempts could be made to calculate the value of currently unexploited mining opportunities in unclaimed territory in Antarctica, the same opportunities on Mars would not be considered a part of the world economy – even if currently exploited in some way – and could be considered of latent value only in the same way as uncreated intellectual property, such as a previously unconceived invention.

Beyond the minimum standard of concerning value in production, use, and exchange on the planet Earth, definitions, representations, models, and valuations of the world economy vary widely.

It is common to limit questions of the world economy exclusively to human economic activity, and the world economy is typically judged in monetary terms, even in cases in which there is no efficient market to help valuate certain goods or services, or in cases in which a lack of independent research or government cooperation makes establishing figures difficult. Typical examples are illegal drugs and other black market goods, which by any standard are a part of the world economy, but for which there is by definition no legal market of any kind.

However, even in cases in which there is a clear and efficient market to establish a monetary value, economists do not typically use the current or official exchange rate to translate the monetary units of this market into a single unit for the world economy, since exchange rates typically do not closely reflect worldwide value, for example in cases where the volume or price of transactions is closely regulated by the government. Rather, market valuations in a local currency are typically translated to a single monetary unit using the idea of purchasing power. This is the method used below, which is used for estimating worldwide economic activity in terms of real US dollars. However, the world economy can be evaluated and expressed in many more ways. It is unclear, for example, how many of the world's 6.6 billion people have most of their economic activity reflected in these valuations.

This text uses material from Wikipedia, licensed under CC BY-SA