Modern Theories of Building up Price Systems in Trade Between Socialist Countries

Abstract

Both in trade between socialist countries and in price-fixing within these countries, the price system is based on the Marx-Lenin theory of value. While taking into account such factors as supply and demand and the utility of goods for a consumer, this theory states that changes in the price level take place around a definite steady point which is the social value of a commodity. This social value consists of the individual values of separate producers and is defined by the labour time necessary for producing a commodity under conditions of production that are socially normal and involve the average degree of skill and intensity of labour prevalent at the time in the given society.