The economic landscape has transformed due to globalization and localization, impacting trade, cultural exchange, and community resilience while raising concerns about inequality and environmental sustainability.

Globalization reshapes economies through interconnected trade, fostering growth, increasing competition, and facilitating technology transfer, while presenting challenges like income inequality and environmental concerns.

Free trade promotes open markets and economic growth, while protectionism seeks to shield domestic industries, impacting employment, pricing, and global economic dynamics.

Comparative advantage drives international trade by encouraging countries to specialize in goods with lower opportunity costs, maximizing output and economic welfare through specialization and exchange.

International organizations influence global economic policies, promote development, address poverty, and facilitate cooperation to tackle climate change and enhance financial stability worldwide.

The balance of payments records a country’s international financial transactions, including trade, investment income, and transfers, essential for understanding economic health and global position.