ABSTRACT
Globalization, the growing level of interconnection between countries, companies, and individuals, serves as the driving force for global economic change. Current global economic trends stem from world events that occurred in the 1990s, including the fall of the Soviet Union. The World Bank designates the economies of the world by four income groups: high, upper-middle, lower-middle, and low income. The study of international economics uses the same tools as other areas in the field of economics, including economic models. An analysis of the global economy demonstrates that most production stems from privately owned means of production in decentralized markets. Three factors contribute to the process of economic growth: accumulation of capital stock, increases in economic resource inputs such as labor, and technological advances.
