A New Look at the Analysis of World Trade and Global Economy

Abstract

We formulate the necessary and sufficient conditions that provide full clearing of markets within the world trade model. We describe equilibrium states with excess supply and propose an algorithm for finding the equilibrium state with the lowest excess supply by solving a certain quadratic programming problem. Based on the demand structure, we propose an algorithm for constructing a supply structure in which international trade is fair. We analyze the trade between the G20 countries using the constructed model of world trade.