# CHAPTER 2: WORLD WIDE ECONOMY

In the first chapter you have discovered that the wealth on our planet is not divided fairly. To understand these big differences between richer (er) and poor(er) people, we need to acquire some basic knowledge on the modern economy. Economics is a subject that you will encounter next year, nevertheless you will familiarize yourself with the basic during this IA-course.

Before we dive into the principles of the global economy, it is wise to form you own opinion on the concepts of poverty and wealth. When do you consider someone to be rich? When are you definitely poor? How did these differences in wealth come into being? And how do people from other parts of our world perceive these concepts?

When working with economy, you have to answer these questions by looking at objective facts. Furthermore, you also have to form your own subjective opinions on this information. The combination of hard facts and different opinions enables you to analyze the global economy around us more critically.

For example, watch this video on how the United Nations calculate the wealth of country. Watch the video and than make exercise 4.