The world economy and its centres

The world economy is the whole of the national economies of all countries, linked by trade and economic ties. It began to form in the 15th–16th-century Age of Discovery, the Industrial Revolution speeded it up from the late 18th century, and from the 1960s automation and the growth of services followed. The economy is divided into three sectors: primary (farming, forestry, fishing, hunting, mining – giving raw materials), secondary (manufacturing and construction – making finished goods) and tertiary (services such as transport, trade, banking, education and healthcare). Depending on which sector leads, countries are agrarian, industrial or post-industrial; less developed countries are often agrarian, while in the most developed ones services have the largest share (post-industrial). The international division of labour means that some countries specialise in certain products and exchange them with others. Specialisation depends on the level of development, economic-geographical position (especially relative to sea routes) and natural resources; for example Saudi Arabia and Kuwait specialise in oil, Chile in copper, Japan in electronics and cars.