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Soviet Foreign Trade - The Decision Process (Hardcover, 1983 ed.)
Loot Price: R2,978
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Soviet Foreign Trade - The Decision Process (Hardcover, 1983 ed.)
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The enigma of Soviet society is nowhere more strikingly manifested
than in its economic relations with the outside world. Western
business people, even those with representative offices in Moscow,
often describe their negotiations with the Soviets as a veritable
black-box affair. Offers for purchase and sale are funneled into
the bureaucracy, usually via the Ministry of Foreign Trade, where
they are digested for very long periods of time. When a response
emerges, little is usually known about the level at which decisions
were made, and even less is known about the criteria that were
employed to make them. In the abstract, at least, foreign trade
decision making in the Western market economies is a rather simple
exercise. An American consumer will purchase a Toyota rather than a
comparable Chrysler if its price, expressed in dollars at the
market exchange rate, is lower. The influences of governmental
tariffs, quantitative restrictions, foreign exchange controls, "buy
American" policies, and the like, are usually of only secondary
importance. In contrast, the Soviet consumer, whether an individual
or an industrial enterprise, does not generally have the authority
to order the importation of goods or services. That authority is
concentrated at the top of Soviet society and administered through
a labyrinthine system of overlapping bureaucratic agencies.
Furthermore, those Soviet agencies cannot respond to price signals
in the same way as the American consumer can, because Soviet
domestic prices and exchange rates are themselves set rather
arbitrarily by governmental agencies.
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