ABSTRACT
The three preceding chapters indicated the position of an individual country in world trade. It is necessary, now, to combine the relationships concerning individual countries into one set of equations describing the world economy. In doing so, we may conveniently distinguish between what are, in this world system, endogenous and exogenous variables. For the world as a whole we consider as endogenous the exports (x), national income (y), and imports (m) of each country. We consider as exogenous, on the other hand, certain other variables which have been introduced at various places in the preceding chapters, such as autonomous investment (vA ) and price ratios https://www.w3.org/1998/Math/MathML"> ( p d p m , p x p w ) https://s3-euw1-ap-pe-df-pch-content-public-p.s3.eu-west-1.amazonaws.com/9781315016733/638486d9-2649-4b3d-946a-6258388baa5d/content/inline-math_32_B.tif" xmlns:xlink="https://www.w3.org/1999/xlink"/> .
