External sign of the world market is. World market and world economy
. it is a category of commodity production that has gone beyond the national framework in search of the sale of its products;
. it manifests itself in the interstate movement of goods that are under the influence of not only internal, but also external demand and supply;
. it optimizes the use of factors of production, prompting the manufacturer in which industries and regions they can be applied most effectively;
. it performs a sanitary role by culling from international exchange goods and often their producers who are not able to provide an international quality standard at competitive prices.
The main external sign of the existence of the world market is
movement of goods and services between countries. The world economy is made up of national-state economies that are in constant and mutual economic connection with each other. The world economy must be regarded as an objective result of economic growth, the result of an immanent desire social production to the most positive economic effect, as a result of the interaction of factors driving the production of material goods. Consequently, the world economy is a global economic organism in which the interconnection and interdependence of all countries and peoples of the planet have developed and are growing. It is characterized by the increasing internationalization of productive forces, the creation of a diverse system of international economic relations, and the formation of international mechanisms that regulate economic exchange between countries. The growing and strengthening integrity is objectively expressed in the world economy. modern world. strategic direction The foreign economic policy of the Russian Federation is the further integration of Russia into the world economic community in order to maximize the use of foreign economic relations for the implementation of long-term structural adjustment Russian economy. However, in modern system Russia participates in world economic relations so far mainly due to the expansion of trade in goods, mainly raw materials and materials. Russia is poorly involved in international production cooperation, trade in services, international capital migration in the form of direct investment.
The Russian economy turned out to be dependent on the export of a narrow range of goods, primarily the fuel and raw materials group, as well as on the import of many consumer goods. The degree of its openness at a certain stage ceased to correspond to the internal capabilities of the country, the scale and depth of the problems facing it. In this regard, in order to solve the problems of stabilizing the growth of the national economy, taking into account the trends in the development of the world economy and trade, as well as ensuring the equal integration of Russia into the world economy, it is necessary to ensure the implementation of the following main goals:
- increasing the competitiveness of the Russian economy;
- maintaining Russia's position in the world commodity markets(raw materials, materials, complete equipment, weapons and military equipment), as well as further expansion of exports of finished goods and services; ensuring equal conditions for the access of Russian goods and services to world markets with adequate protection of the domestic market from unfair foreign competition in accordance with the established practice of international economic relations; implementation of a customs tariff policy that contributes to the creation favorable conditions to expand national production and increase its competitiveness, while not worsening the conditions for competition in the domestic market;
- reducing capital flight through foreign trade channels by creating more favorable economic conditions in Russia, as well as tightening control over the implementation of export-import operations, including currency and customs control.
International financial (economic) organizations(MFIs) are created by combining financial resources participating countries to solve certain problems in the development of the world economy. These tasks can be:
. operations in the international currency and stock market with the aim of stabilizing and regulating the world economy, maintaining and stimulating international trade;
. interstate loans - loans for the implementation of state projects and financing of the budget deficit;
. investment activity - lending in the region international projects(projects affecting the interests of several countries participating in the project both directly and through resident commercial organizations);
. charitable activities (financing of international assistance programs) and financing of fundamental scientific research. As examples of international financial institutions can be called the International Monetary Fund, the World Bank, the European Bank for Reconstruction and Development, the International Financial Corporation. The IMF and the World Bank are legally separate organizations with different purposes, although they originated at the same time. the main task World Bank - Promoting sustainable economic growth that reduces poverty in developing countries.
Objectives of the International Monetary Fund:
Intergovernmental monetary and credit organization for the promotion of international monetary cooperation on the basis of consultations of its members and the provision of loans to them.
1. To promote the development of international cooperation in the monetary and financial sphere within the framework of a permanent establishment.
2. To promote the process of expansion and balanced growth of international trade, as well as the development of the productive resources of all Member States, considering these actions as the priorities of economic policy.
3. Promote currency stability, maintain an orderly exchange regime among member states, and avoid using currency devaluations to gain competitive advantage.
4. To assist in the creation of a multilateral system of settlements for current transactions between member states, as well as in the elimination of foreign exchange restrictions that impede the growth of world trade.
5. By temporarily providing the general resources of the Fund to Member States, subject to adequate guarantees, to create a state of confidence in them, thereby enabling them to correct imbalances in their balance of payments without resorting to measures that could harm national or international welfare.
6. In accordance with the above - to reduce the duration of imbalances in the external balance of payments of the member states, as well as to reduce the scale of these violations.
IBRD
(International Bank for Reconstruction and Development). The Bank, as a specialized agency of the United Nations, is part of the United Nations system. Goals:
1) promoting the reconstruction and development of the territories of the Member States by encouraging investment for industrial purposes;
2) encouragement of private foreign investment and, in addition to private investment, if it is difficult to secure, the provision financial resources for production purposes;
3) stimulation of long-term balanced growth and assistance in maintaining the equilibrium of the balance of payments by encouraging international investment to develop the productive resources of the Bank's member states.
IFC (International Finance Corporation).
Goals:
1) Promoting the economic growth of member countries by encouraging entrepreneurship in production area, i.e. at the micro level, thus complementing the activities of the IBRD;
2) pooling Money used by the Fund to provide loans to Member States in financial difficulty;
3) strengthening the role of the calculation basis for the Fund's determination of the amount of loan that can be extended to a contributing member, or the amount that it can receive during periodic allocations of special funds, known as special drawing rights;
4) determining the number of votes granted to each Member State.
major ideas on which the concept of M. Kaplan is based is the idea of the fundamental role played in the knowledge of the laws international system its structure. This idea is shared by the vast majority of researchers. According to it, the uncoordinated activity of sovereign states, guided by their own interests, forms an international system, main feature which
main way, discussing the economic aspects of the problem. At the same time, this understanding was based on an ideological setting, the main essence of which was to rehash the old Leninist dogma, according to which the United States of Europe is either impossible or reactionary (28). “Within the framework of capitalism,” one of the authors wrote, for example, in 1963, “not only economic
main features of regularities are their relative, probabilistic, unpredetermined nature. Main signs social laws that unite them with the laws of nature, are considered the presence of strictly defined conditions under which their manifestation becomes inevitable, as well as a partial, approximate implementation of the conditions under which the law operates. We emphasize in this connection that the degree
major ideas of the concept of M. Kaplan is the idea of the fundamental role of the structure of the international system in the knowledge of the laws of the latter. This idea is shared by the vast majority of researchers. According to the idea of the fundamental role of the structure, the uncoordinated activity of sovereign states, guided by their own interests, forms an international system in which main
main way by discussing the economic aspects of the problem. This reflection was based on an ideological setting, the essence of which was to rehash the old Leninist dogma, according to which the United States of Europe is either impossible or reactionary (Shishkov, 1993). “Within the framework of capitalism,” one of the authors wrote, for example, in 1963, “not only economic
main role - the guarantor of individual and social security of citizens. In a number of aspects, in the context of globalization, the state form prevents the flourishing of human rights and freedoms. becomes a hindrance in peace unified world a community that would develop in the interests of all peoples and every person. However, the implementation of the propagandized ideas of a “smaller state”, “state - night
major conflict lines (“axes”) that separated, on the one hand, the West and the East (ideological, political, military-strategic confrontation), and on the other, the North and the South (that is, economically developed and backward countries in this respect). Following O. Yang, these authors also believe that, despite the integrity of the planetary international system, gaps are inevitable in it, due to the fact that
main element, - the state as a form of political organization of people, gradually spread to the whole world) not only gave impetus to interstate cooperation, but also determined its main direction. The starting points for cooperation between states as political units are mutual respect for sovereignty and non-interference in each other's internal affairs, and its central
major in the science of international relations. It concentrates the idea of interacting world arena of social communities how about constituent parts, elements of a single society, - "international society". The nature of relations between the elements of "international society" is increasingly reminiscent of the relations that exist within certain states. Despite maintaining distinctive
main area of employment. On its basis, a new sector of information and intellectual activity is being formed; ¦ in the context of a new stage of development gaining momentum, increased competition and instability economic situation a transition to a society of high flexibility is planned. Mobility increases public institutions, vocational qualification and social class
World market- the sphere of stable commodity-money relations between countries based on the international division of labor and other factors of production.
The world market covers all the main areas of the international division of labor. The scale of development of the world market reflects the degree of development of the process of internationalization of social production. The world market is derived from the domestic markets of countries. At the same time, it has an active inverse effect on the macroeconomic balance of isolated economic systems. Segments of the world market are determined by both traditional factors of production - land, labor and capital, and relatively new ones - information technology and entrepreneurship, the importance of which is growing under the influence of the modern scientific and technological revolution. Markets for goods and services, capital and labor force, formed at the supranational level, are the result of the interaction of world demand, world prices and world supply, are affected by cyclical fluctuations, operate under conditions of monopoly and competition.
The global market is characterized by the following main features:
It manifests itself in the interstate movement of goods that are under the influence of not only internal, but also external demand and supply;
Optimizes the use of production factors, prompting the manufacturer in which industries and regions they can be applied most effectively;
It performs a sanitizing role by rejecting goods and often their manufacturers from international exchange, which are not able to provide an international quality standard at competitive prices.
The main external sign of the existence of the world market is the movement of goods and services between countries.
International trade consists of two counter flows of goods and services that form the export and import of each country. Export is the sale and export of goods abroad, import is the purchase and import of goods from abroad. The difference between the cost estimates of exports and imports forms the trade balance, and the sum of these estimates is the foreign trade turnover.
Product-service. The product-service includes the following components:
I. Manufacturing Services:
know-how,
Licenses;
Transport services;
Engineering services, etc.
II. Consumer services:
Socio-cultural services (education, healthcare, sports, etc.).
The share of economically developed countries in the world market of services is about 80%.
Among the reasons stimulating the rapid growth of the world market for services are the following:
mature economy and high level lives increase the demand for services;
The development of all types of transport stimulates the international mobility of both entrepreneurs and the population;
New forms of communication, including satellites, sometimes make it possible to replace the personal contacts of sellers and buyers;
The accelerated process of expanding and deepening the international division of labor, which leads to the formation of new types of activities, primarily in the non-productive sphere.
Dynamics of development of international trade
Since the second half of the 20th century, when international exchange, according to M. Pebro's definition, acquires an "explosive character", world trade has been developing at a high pace. In the period 1950-1998. world exports grew 16 times. According to Western experts, the period between 1950 and 1970 can be characterized as a "golden age" in the development of international trade. In the 1970s, world exports fell to 5%, falling further in the 1980s. In the late 80s, he showed a noticeable revival. Since the second half of the 20th century, the uneven dynamics of foreign trade has manifested itself. In the 90s Western Europe- the main center of international trade. Its exports were almost 4 times higher than those of the United States. By the end of the 80s, Japan began to emerge as a leader in terms of competitiveness. In the same period, it was joined by the "new industrial countries" of Asia - Singapore, Hong Kong Taiwan. However, by the mid-1990s, the United States was once again taking a leading position in the world in terms of competitiveness. Export of goods and services in the world in 2007, according to the WTO, amounted to 16 trillion. USD. The share of the group of goods is 80% of services 20% of the total volume of trade in the world.
On the present stage international trade plays an important role in the economic development of countries, regions, the entire world community:
international trade has become a powerful factor in economic growth;
the dependence of countries on international trade has increased significantly.
The main factors affecting the growth of international trade:
development of the international division of labor and internationalization of production;
activities of transnational corporations TNCs;
Analysis of the global consulting market
Over the past 20 years there has been a very large increase consulting services. This is due to the globalization of the world economy. In 2000-2001, in connection with the stock market crises, consulting experienced better times, slowly recovering in 2003-2004, by 2007 reached a fairly high level, and despite the global financial crisis, in 2009 international market consulting is reaching fairly high rates, which is primarily due to a slight increase in the client base due to an increase in demand for business optimization services, IT projects, improving the efficiency of using various resources (including labor), training, etc. . The largest markets for consulting services today are the US and the EU, good dynamics show the markets of Asian countries, but their share in the world market is still small.
In recent years, there have been significant changes in the structure of world trade. In particular, the share of communication services and information technologies At the same time, the share of trade in commodities and agricultural products is declining.
Certain changes are also taking place in the geographical distribution of world trade. The trade of developing countries is gradually growing, but the volume of goods flows from the newly industrialized countries is growing at an especially rapid pace.
RUSSIA IN THE WORLD MARKET OF SERVICES
In the process of the transition of the Russian economy to a market basis and its integration into the world economy, one should take into account the active role of the service sector, as well as all aspects of its development abroad (technical, structural, organizational, managerial, quantitative and qualitative). Our primary task is to accelerate the development of the service sector.
Structure and main quality parameters Russian market services differ significantly from Western ones, primarily in the predominance of traditional industries that provide transportation and marketing of manufactured products. Currently, there are gaps in Russia regarding the statistical treatment of services in both domestic production and foreign trade (especially in relation to the geographical structure of export and import flows of service industries). There are problems with the classification of services. So, a brake on development practical activities operators of the services market there is a discrepancy in classifying certain types of services as export-import operations. There is a need and work is already underway to compile of the all-Russian classifier species economic activity for goods and services adapted to the international classification system.
The economic development of the service sectors was accompanied by the creation of an appropriate legislative framework. The need for further development of a regulatory regime for the services sector, which will ensure the optimal combination of state control measures and competitive conditions for the activities of domestic and foreign service providers, is becoming increasingly clear for Russia in the light of the task of joining the WTO. The most important and predominant item of the trade balance Russian Federation in the service sector in recent years is tourism
The world economy is a set of national economies of the countries of the world that are in close interaction and interdependence through international economic relations.
Subjects of the world economy: states; international organizations of various levels; international financial centers; national enterprises of various levels; transnational companies; individuals.
Stages of formation of the world economy:
- 15th-18th century - the division of labor, the development of production, as a result of which there was a need to develop new territories, enter new markets;
- Late 18th-early 19th century - industrial Revolution, which led to mass large-scale production;
- Late 19th century - 50-60s. 20th century:
Late 19th century-20s 20th century (monopolistic associations are being created, the struggle for the territory of trade is intensifying);
30-50s of the 20th century (“the world economic crisis”, after which there was a scientific and technological revolution and new industries appeared);
60-80s 20th century (the collapse of the colonial system, the formation of a large number of independent states in Africa, Asia, Latin America; the European Union is formed);
4. late 20th century - up to the present time (labor migration, a single global information space, the integrity of the financial system).
- Correlation of concepts: world.market, international trade, world.trade
International trade - the sphere of international commodity-money relations, which is a combination of foreign trade of all countries of the world.
In relation to one country, the term "foreign trade of the state" is usually used, in relation to the trade of two countries among themselves - "interstate, mutual, bilateral trade", and in relation to the trade of all countries with each other - "international or world trade". Often, international trade is understood as trade not only in goods, but also in services.
- World economy: concept, subjects, objects, structure
The world economy is a multi-level, global economic system that unites the national economies of the countries of the world on the basis of the international division of labor through the system of international economic relations.
In general, the world economy can be defined as a set of national economies and non-state structures, united international relations. The world economy arose thanks to the international division of labor, which entailed both the division of production (that is, international specialization) and its unification - cooperation.
Object of the world economy: world (world) economy.
Subjects of the world economy: states; international organizations of various levels; international financial centers; national enterprises of various levels; transnational companies; big businessmen.
The subjects of the world economy can be divided into three levels depending on the functions and tasks they perform.
1. The level of business entities, i.e. various firms and organizations - micro level.
2. State level (macro level), i.e. the level of action of various government agencies and organizations. At this level, by adopting various regulations, an environment is formed in which business entities operate, i.e. the rules for conducting foreign economic activity, the circle of possible participants, the tax policy in this area are determined; the foreign economic policy of the state is formed.
3. Interstate level - i.e. the level of action of various interstate organizations that determine the basic rules of relations on issues of foreign economic relations, developed in agreement with the member states of these organizations.
The structure of the world economy consists of the following major substructures: sectoral, reproductive, territorial and socio-economic.
Industry structure is the ratio between different industries in an economy.
The reproductive structure is the ratio between various types use of productive GDP.
Territorial structure - the ratio of the economy of various countries and territories.
Socio-economic structure is the relationship between different socio-economic structures.
- International economic relations
International economic relations are, in a broad sense, a system of economic relations between the national economies of individual countries, represented by various economic entities, as well as international economic organizations and financial centers.
The development of international economic relations depends on a number of factors:
a) natural factors (natural-climatic, demographic);
b) acquired factors (production, scientific and technical, political, social, national-ethnic, religious).
The main forms of international economic relations:
International trade in goods;
International trade in services;
International specialization and cooperation of production;
International scientific and technical cooperation and exchange of scientific and technical results;
International movement of capital, international monetary and credit and financial relations;
International labor movement;
International information exchange;
Activities of international economic organizations and cooperation in solving global problems.
Sometimes the forms of international economic relations also include international economic integration (the highest level of the international division of labor, resulting from the deepening of international specialization and the unification of the national economies of a number of countries).
The objects of international economic relations are primarily goods and services circulating in international trade.
IEO subjects: states; international organizations of various levels; international financial centers; national enterprises of various levels; transnational companies; individuals.
- MT methods: commodity exchanges, international auctions, international trades.
International commodity exchanges are a constantly operating large wholesale market, in which, according to certain rules, purchase and sale transactions are made for mass, qualitatively homogeneous and interchangeable goods.
Members of commodity exchanges are, as a rule, individuals, representing industrial or trading companies that produce or trade goods traded on the exchange. Brokers are hired to mediate transactions. They act on behalf and at the expense of third parties, receiving commissions for their services. The invited guests are the last group of exchange trade participants. They can make deals with the help of exchange members or brokers.
The goods that are traditionally the subject of exchange turnover include:
Vegetable products (grain, sugar, coffee, cocoa, tea, spices);
Animal products (live cattle, meat, eggs, lard);
Industrial raw materials and products of its processing;
Metals, as well as products and semi-finished products from them.
The exchange commodity must be homogeneous, it must be suitable for standardization, it must not spoil quickly, the demand and supply for the exchange commodity must be massive.
International auctions are a specially organized permanent market where purchase and sale transactions are carried out through targeted competition between buyers.
Goods sold at auctions are mass and single, but their common feature is the heterogeneity of batches or individual copies, i.e. they cannot be bought without a preliminary inspection of the sold unit of goods (lot).
At auctions, goods accepted from sellers are sorted according to their quality into batches (lots), a sample is taken from each batch, and a number is assigned to the lot. A catalog is then produced and sent to potential buyers who arrive at the auction early to inspect the item. Bidding at auctions is carried out either with an increase in price or with a decrease (“Dutch auction”). Auction bidding with a price increase can be conducted "by voice" or using gestures. In the first case, the auctioneer announces the lot number and names the initial price, asking: "Who is more?". If the next price increase is not offered, then after asking three times: “Who is more?” - the lot is considered sold to the one who named the previous price. In a price reduction auction, the auctioneer lowers the price by predetermined discounts. The lot is purchased by the buyer who first says "yes".
Bidding is a method of concluding contracts of sale or a contract, in which the buyer (customer) announces a competition on the day of sellers (contractors) for goods with predetermined technical and economic characteristics and, after comparing the received offers, signs a contract of sale or a contract with that seller ( contractor), which offer more favorable conditions for the buyer (customer).
Various equipment is purchased through tenders, trucks, railway rolling stock, ships and other vehicles, communication equipment, etc.
Bidding can be open and closed (tender).
Bidding stages:
- Preparation (initiator - Government, state or private organization; preparation and organization is carried out by the Tender Committee);
- Preparation and submission of proposals by bidders;
- Evaluation of proposals of participants and award of contracts.
- World market: concept, elements, conjuncture, factors, features.
The world market is a synthetic concept that unites the markets of all countries of the world into a single whole. At the same time, the world market combines international trade in goods and services, the international movement of capital, international movement labor force and international information exchange.
The main features of the global market:
- It is based on the development of a market economy;
- The world market is manifested in the interstate movement of goods and services, the main factors of production under the influence of the ratio of supply and demand;
- The world market plays a sanitizing role; eliminates all unnecessary.
Acting as a sphere of interstate exchange of goods, the world market has a reverse effect on production, showing it what, how much and for whom it is necessary to produce. In this sense, the world market turns out to be primary in relation to the producer and is the central category of the theory of international economics.
The main external sign of the existence of the world market is the movement of goods and services between countries.
1) international trade in goods and services;
2) international movement of capital;
3) international currency settlement system;
4) international labor migration;
5) international information technology exchange.
Each of the noted forms has a qualitative originality, which, however, does not prevent their interpenetration, which is most clearly manifested in the activities of TNCs, the creation of integration groups and the functioning of free economic zones.
Speaking about the subjects of the international economic relations, it is necessary to highlight states(with a developed market economy, developing, transitional), regional integration groupings ( for example , European Union), international organizations, transnational corporations.
National market economies do not develop in isolation, but in close interaction with each other. No country in the world, not even the United States, can produce the entire range of modern goods, of which there are tens of millions, provide itself with hundreds of different services, investment and labor resources, highly qualified specialists. Countries meet the growing needs of a personal and industrial nature through mutual exchange and cooperation in production, scientific research, solving environmental and other global problems requiring the pooling of financial, technical, professional and other resources. As the productive forces develop, the interdependence of national economies increases, the socio-economic development of countries is increasingly determined by the scale, diversity and efficiency of their economic relations with the rest of the world, which together form the system of international economic relations (IER).
International economic relations (IER) are relations between residents of a given country and residents of other countries that are non-residents in relation to this country.
Economic relations between countries are carried out and developed on the basis of the international division of labor (IRL), the essence of which is the specialization of countries in the production of certain goods, in the production of which they have certain advantages; specialization makes international exchange and cooperation possible and necessary.
The international division of labor is the highest stage in the development of the territorial division of labor, when the interregional national division of labor goes beyond national borders. It acts as an objective precondition for exchange between countries.
The international division of labor determines the exchange of goods and services between countries, its expansion and diversification, the emergence of international trade and the world market, which is the total commodity circulation between countries or the totality of all external markets.
The world market arises on the basis of a large-scale factory industry, the products of which require a worldwide market. It is a natural result of the development of domestic national markets that have gone beyond state borders. The world market is a sphere of stable commodity-money relations between countries based on the international division of labor and other factors of production.
The world market is manifested through international trade, which is a combination of foreign trade of all countries and consists of two counter flows of goods - export (export) and import (import).
The world market differs from domestic markets primarily in that not all goods that circulate on national markets enter this market. The world market rejects goods from international exchange that do not meet international standards quality at world prices. The world market acts as a sphere of interstate exchange, it has an inverse effect on national production, showing what, how much, at what cost and for whom it is necessary to produce.
In Fig.1 on conditional example the interaction of three countries through the exchange of goods is shown. Areas A, B, C represent the domestic markets of these countries. Areas in, with, and are the external markets of the countries. Together and in interaction, they represent the world market (c, a + c, a + c, c).
characteristic feature world market is the interstate movement of goods.
3. International movement of goods.
The main external sign of the existence of the world market is the movement of goods and services between countries.
international trade(international trade) - the sphere of international
commodity-money relations, which is a set of foreign trade of all countries of the world. For one country, usually
the term "foreign trade of the state" is used, in relation to
trade between two countries - "interstate, mutual, bilateral trade", and in relation to the trade of all countries with each other - "international or world trade". Often, international trade is understood as trade not only in goods, but also in services. Services are also goods, but often they do not have a materialized form and differ from goods in a number of parameters, which will be discussed below.
International trade consists of two counter flows of goods - exports and imports and is characterized by a trade balance and trade turnover.
Export(export / s) - the sale of goods, providing for its export abroad.
Import(import/s) - the purchase of goods, which provides for its import due to
trade balance(trade balance) - the difference in the value of exports
and import.
Trade turnover(trade turnover) - the sum of the value of exports and imports.
According to internationally accepted standards of international trade statistics, the key element for recognizing trade as international, the sale of goods as export, and the purchase as import, is the fact that the goods cross the customs border of the state and record this in the relevant customs reporting. At the same time, whether the product of the owner changes or not - it does not matter.
For example, if a computer is sold (and, in fact, transferred) to an American
division of IBM to its Russian division, it is considered
US exports and Russian imports, even though the owner of the goods remained American company IBM. In the theory of the balance of payments, as we will see below, on the contrary, the change of ownership of the goods is decisive, and the sale of Russian raw materials to a branch of an American enterprise located in Russia will be considered Russian exports, although the raw materials did not cross the border.
Export and import are two key concepts that characterize the international movement of goods, which are used for a comprehensive analysis of international trade and for practical purposes. The trade balance and turnover, as their derivatives, have a narrower analytical and practical value and are used less often.
4. Equilibrium in the world market.
Based on the premise of the balance of supply and demand, then graphically the concepts of export and import can be represented as shown in Fig. 2. Balance of supply and demand in the world market
Q1Imagine that countries I and II in isolation from each other produce and consume the same product. The demand and supply of goods in country I are DI and SI, and in country II - respectively DII and SII.
The horizontal axis shows the volumes of production of goods QI, QI, along the vertical axis - its internal price PI, PII, respectively, in countries I and P. Market equilibrium of supply and demand for the product is achieved at point E1 in country I, where the price of the product is P1, and point E2 in country II, where the price of the good is P2. Since P1< Р2, this product cheaper in country I than in country II, and, therefore, it is profitable for country I to export it to country II and get some profit from this, and for country II it is profitable to import it from country I and thereby save and reduce its purchases on the domestic market . Due to the difference in domestic prices between countries I and II, country I, at any price for a product greater than P1, has an excess supply of it. In country II, at any price for a product less than P2, there is an excess demand for it.
Countries establish trade relations.
The equilibrium price P1 in country I shows that at point E1 the demand for the good is exactly equal to the supply and country I has no goods to export. This determines the point P1 "on the supply curve in the world market, showing the minimum price, upon reaching which there will be no export of goods from country I. For country II, the equilibrium price P2 shows that at the point of equality of supply and demand E2 the country does not need any import of the product, since it manages with its own resources. This determines the point P2" on the demand curve in the world market, showing the maximum price, upon reaching which the import of goods by country II will stop.
