What is meant by the global economy?

The term "global economy" refers to the interconnected economic activities of all countries around the world, which are increasingly linked through trade, investment, and financial systems. This concept recognizes that national economies do not operate in isolation; rather, they interact with one another, influencing each other’s economic conditions, policies, and outcomes.

The global economy encompasses various aspects such as international trade, cross-border investment, currency exchange, and the global supply chain. As such, it reflects a system where actions taken in one country can have significant implications for others, illustrating the importance of understanding economic dynamics on a worldwide scale.

The other options do not capture the essence of the global economy. The first option focuses on a single country's system, which contradicts the idea of interconnectedness. The third option limits the discussion to developing nations, ignoring the roles of developed economies. The fourth option restricts the definition to agricultural products, overlooking the broader range of economic activities involved in the global economy.