The supply and demand for exports for industrialized countries: a disequilibrium analysis.

Price and income elasticities are emphasized in the analysis of international trade in theory and practice. Moreover, most of the empirical work undertaken by economists to estimate the differences in elasticities among countries considers the formulation and estimation of demand for exports only. Demand is clearly not equal to supply in some markets because of slow adjustment of prices. These markets will be characterized by either shortages or surpluses. The world trade market is even more vulnearable to political influences than a domestic commodity market and, in addition, is hampered by various obstructions to the flow of international trade. Other than the purely economic reasons of excess demand and excess supply, there are noneconomic factors that contribute to the disequilibrium aspects of the international trade market. Uncertain and costly information resulting from indirect, disguised and sometimes capricious trade policies of foreign countries may keep the export prices from adjusting quickly to the equilibrium values.