,
Olena Petrivna Dovzhyk,
Anatoly Sergiyovych Zhokhin,
Wolodymyr Hlib Kozyrski,
Andrii Pylypovych Makhort
The Ricardian model of world trade based on comparative advantage is not sufficient to justify equal trade relations. The existing model of trade relations does not explain the distribution of income among trading countries. This paper presents a method for building equitable trade relations. Its essence is to present an algorithm for building such trade relations, based on the previously proposed model of world trade, that the trade balance of each country would be equal to zero. Under such conditions, tariff wars would become impossible. It is proved that, provided that the supply structure is consistent with the demand structure, it is always possible to build an equilibrium price vector for which the trade balance of each country is zero. This state of economic equilibrium is called ideal. The article presents an algorithm to build an export structure based on the structure of imports. This algorithm is quite simple and allows for a wide range of applications. Under fairly simple realistic assumptions about the behaviour of countries trading with each other that are subject to tariff restrictions, it is proved that this leads to an increase in the prices of the goods traded by these countries. Among the equilibrium states, there are also those called oversupply states. The latter describes the phenomenon of recession. This contributes to a fall in stock market indices.
| Published in | American Journal of Management Science and Engineering (Volume 10, Issue 1) |
| DOI | 10.11648/j.ajmse.20251001.12 |
| Page(s) | 11-15 |
| Creative Commons |
This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited. |
| Copyright |
Copyright © The Author(s), 2025. Published by Science Publishing Group |
International Trade Balance, Clearing Markets, Ideal Equilibrium State, Tariff Restrictions, Recession
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APA Style
Gonchar, N. S., Dovzhyk, O. P., Zhokhin, A. S., Kozyrski, W. H., Makhort, A. P. (2025). Impact of Tariff Wars on Global Economy. American Journal of Management Science and Engineering, 10(1), 11-15. https://doi.org/10.11648/j.ajmse.20251001.12
ACS Style
Gonchar, N. S.; Dovzhyk, O. P.; Zhokhin, A. S.; Kozyrski, W. H.; Makhort, A. P. Impact of Tariff Wars on Global Economy. Am. J. Manag. Sci. Eng. 2025, 10(1), 11-15. doi: 10.11648/j.ajmse.20251001.12
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Download@article{10.11648/j.ajmse.20251001.12,
author = {Nicholas Simon Gonchar and Olena Petrivna Dovzhyk and Anatoly Sergiyovych Zhokhin and Wolodymyr Hlib Kozyrski and Andrii Pylypovych Makhort},
title = {Impact of Tariff Wars on Global Economy
},
journal = {American Journal of Management Science and Engineering},
volume = {10},
number = {1},
pages = {11-15},
doi = {10.11648/j.ajmse.20251001.12},
url = {https://doi.org/10.11648/j.ajmse.20251001.12},
eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ajmse.20251001.12},
abstract = {The Ricardian model of world trade based on comparative advantage is not sufficient to justify equal trade relations. The existing model of trade relations does not explain the distribution of income among trading countries. This paper presents a method for building equitable trade relations. Its essence is to present an algorithm for building such trade relations, based on the previously proposed model of world trade, that the trade balance of each country would be equal to zero. Under such conditions, tariff wars would become impossible. It is proved that, provided that the supply structure is consistent with the demand structure, it is always possible to build an equilibrium price vector for which the trade balance of each country is zero. This state of economic equilibrium is called ideal. The article presents an algorithm to build an export structure based on the structure of imports. This algorithm is quite simple and allows for a wide range of applications. Under fairly simple realistic assumptions about the behaviour of countries trading with each other that are subject to tariff restrictions, it is proved that this leads to an increase in the prices of the goods traded by these countries. Among the equilibrium states, there are also those called oversupply states. The latter describes the phenomenon of recession. This contributes to a fall in stock market indices.
},
year = {2025}
}
TY - JOUR T1 - Impact of Tariff Wars on Global Economy AU - Nicholas Simon Gonchar AU - Olena Petrivna Dovzhyk AU - Anatoly Sergiyovych Zhokhin AU - Wolodymyr Hlib Kozyrski AU - Andrii Pylypovych Makhort Y1 - 2025/04/29 PY - 2025 N1 - https://doi.org/10.11648/j.ajmse.20251001.12 DO - 10.11648/j.ajmse.20251001.12 T2 - American Journal of Management Science and Engineering JF - American Journal of Management Science and Engineering JO - American Journal of Management Science and Engineering SP - 11 EP - 15 PB - Science Publishing Group SN - 2575-1379 UR - https://doi.org/10.11648/j.ajmse.20251001.12 AB - The Ricardian model of world trade based on comparative advantage is not sufficient to justify equal trade relations. The existing model of trade relations does not explain the distribution of income among trading countries. This paper presents a method for building equitable trade relations. Its essence is to present an algorithm for building such trade relations, based on the previously proposed model of world trade, that the trade balance of each country would be equal to zero. Under such conditions, tariff wars would become impossible. It is proved that, provided that the supply structure is consistent with the demand structure, it is always possible to build an equilibrium price vector for which the trade balance of each country is zero. This state of economic equilibrium is called ideal. The article presents an algorithm to build an export structure based on the structure of imports. This algorithm is quite simple and allows for a wide range of applications. Under fairly simple realistic assumptions about the behaviour of countries trading with each other that are subject to tariff restrictions, it is proved that this leads to an increase in the prices of the goods traded by these countries. Among the equilibrium states, there are also those called oversupply states. The latter describes the phenomenon of recession. This contributes to a fall in stock market indices. VL - 10 IS - 1 ER -
Mathematical Modeling Laboratory at Synergetics Department, Bogolyubov Institute for Theoretical Physics of NASU, Kyiv, Ukraine
Mathematical Modeling Laboratory at Synergetics Department, Bogolyubov Institute for Theoretical Physics of NASU, Kyiv, Ukraine
Mathematical Modeling Laboratory at Synergetics Department, Bogolyubov Institute for Theoretical Physics of NASU, Kyiv, Ukraine
Mathematical Modeling Laboratory at Synergetics Department, Bogolyubov Institute for Theoretical Physics of NASU, Kyiv, Ukraine
Mathematical Modeling Laboratory at Synergetics Department, Bogolyubov Institute for Theoretical Physics of NASU, Kyiv, Ukraine
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