World market

The world market was the result of the development of international trade. It is a special sphere of commodity-money relations, which is formed between individual countries, based on the division of production factors and labor resources.

The world market is one of the main categories of the world economy, including its main parameters and supplementing it with other essential features directly related to the mobility of production factors on an international scale.

The concept of the world market is often defined in three aspects: from the position of the macroeconomic structure of the international economy; From the position of actors participating in the international exchange of goods and services; From the position of political economy.

As a macroeconomic structure of the world economy, the world market is a combination of national markets and individual markets of the country's integration economic groups. The inclusion of individual national markets in general is determined by the extent to which the country itself is included in international relations and is expressed in terms of its total share.

From the position of world economic entities participating in world trade, the world market is an international level system of economy, including consumers, producers, organizations and intermediaries that ensure the flow of these relations, which form the aggregate supply and demand.

From the position of the political economics theory, the world market is a set of operations for the purchase and sale of various goods (services) between individual economic entities of the world level.

The formation of the world market is due to the formation and development of commodity production and the international labor market. The main influence on its occurrence was the development of a large machine industry.

There are several explanatory circumstances for this. First of all, the pursuit of profits has created the best conditions for selling products not only within their own countries, but also beyond their borders. Thus, a situation was formed in which international trade and the world market began to be practically identified. In addition, it was the machine industry that made it possible to produce huge quantities of goods for sale, which widened the limits of the solvency of buyers that appeared on foreign markets.

The capacity of the world market began to grow at a rapid pace. The most developed industries rushed to a constant flow for export. Mass production led to an increase in demand for raw materials, which again led to an even greater involvement in the world market, not only buyers but also sellers. Gradually formed not only the market of goods, but also the global capital market, the main function of which is the accumulation and redistribution of funds in the form of capital between individual countries.

The world market was formed as a derivative of national markets, since states initially started the production of any products for themselves, and only then the excess of goods went abroad. That is, the world market has appeared and exists within the framework of the international economy.

The main characteristics of the world market are the following.

Capacity is the aggregate supply that exists on the market at a certain moment. It is numerically equal to the volume of all world exports.

The conjuncture of MR is a real supply-demand ratio, which can be high, low or equilibrium. The conjuncture depends on a large number of factors, but the main impact on it is provided by the general state of the international economy (upswing - recession - recession - depression), as well as the state of the economic systems of some of the most developed countries; The composition of the subjects of the international market (the more of them are in the composition of monopoly large structures, the greater the likelihood of a possible monopolization of the market in the future).