With globalization continuing apace, the world economy continues to experience dramatic change and development. This third edition of "Understanding the World Economy" builds on the popular format of its predecessors to provide the best concise guide to its subject for students of international economics. Since the previous edition, new developments covered include: the ongoing impact of 9/11 and the Iraq War; the increased number of free trade agreements, custom unions and common markets, including the recent accession of ten new countries to the European Union in 2004 - an acknowledgment of the huge impact of private firms in shaping the global economy; an examination of the role of the International Monetary Fund, World Bank and World Trade Organization. The book takes the student through the major characteristics of the global economy in jargon-free non technical language. Chapter summary diagrams and a wealth of boxes and tables make this an essential introduction for those just beginning the subject as well as the casual reader.