The world market was the result of the development of international trade. It represents a special sphere of commodity-money relations, which develops between individual countries, based on the separation 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 perspective of the macroeconomic structure of the international economy; from the position of entities participating in the international exchange of goods and services; from a political and economic perspective.
As a macroeconomic structure of the global economy, the world market is a combination of national markets and individual markets of the country's economic integration groups. The involvement of individual national markets in the total is determined by the degree of inclusion of the country itself in international relations and is expressed by its total share in its entirety.
From the standpoint of the subjects of the world economy participating in world trade, the world market is a system of economy of an international level, including consumers, manufacturers, organizations and intermediaries, ensuring the flow of these relations, which form the aggregate demand and supply.
From the standpoint of political economic theory, the world market is a set of transactions of purchase and sale of various goods (services) between individual world-class entities.
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 emergence had the development of large-scale machine industry.
There are several explanatory circumstances for this. First of all, the pursuit of profits created the best conditions for the sale of products not only within their own countries, but also beyond their borders. Thus, a situation took shape 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 release huge quantities of goods for sale, which expanded the boundaries of solvency of buyers who appeared on foreign markets.
The capacity of the global market began to grow rapidly. The most developed industries have rushed a constant stream of exports. Mass production led to an increase in demand for raw materials, which again led to an even greater pulling of not only buyers, but also sellers into the world market. Gradually, not only the commodity market was formed, but also the world 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 the national ones, since the states initially began to produce any products for themselves, and only then did the excess of goods go abroad. That is, the world market has appeared and exists within the framework of the international economy.
The main characteristics of the global market are as follows.
Capacity - the aggregate supply that exists in the market at a certain moment. Numerically, it is equal to the volume of all world exports.
The conjuncture of MR is the real ratio of supply and demand, which can be high, low or equilibrium. The conjuncture depends on a large number of factors, however, the general state of the international economy (rise - recession - recession - depression), as well as the state of the economic systems of some of the most developed countries, have the main influence on it; the composition of the subjects of the international market (the more they are in the composition of large monopolistic structures, the greater the likelihood of a possible monopolization of the market in the future).