TITLE:
International Trade and Global Economy
AUTHORS:
Nicholas Simon Gonchar, Olena Petrivna Dovzhyk, Anatoly Sergiyovych Zhokhin, Wolodymyr Hlib Kozyrski, Andrii Pylypovych Makhort
KEYWORDS:
Equilibrium State, Ideal Equilibrium, Recession Phenomenon, Generalized Equilibrium Price Vector, International Trade
JOURNAL NAME:
Modern Economy,
Vol.13 No.6,
June
30,
2022
ABSTRACT: We have elaborated a new method to study
international trade based on the theory of economic equilibrium. Here we give
developed algorithms to construct equilibrium states. Within the framework of
the theory of economic equilibrium, we suggested a mechanism explaining the
recession phenomenon by the exchange mechanism breakdown. For this purpose, we
introduced the recession level parameter. The paper gives our study of goods
exchange nature between countries of the G20. It turned out that in each
studied year, the trade between the G20 countries was not in equilibrium. The
equilibrium state of trade between the G20 countries was highly degenerated and
far from ideal equilibrium. Also, we have calculated the recession level
parameter for each equilibrium state and it showed that the international
currency was strengthening during 2016-2019.