Pricing behavior prior to the Bucharest principles

Abstract

When the world socialist economic system ^[1] was first established in the wake of the profound shifts in international relations after World War II, it was felt that the nature of the members of that group called for the implementation of socialist principles also in their reciprocal commercial relations.^[2] The immediate rationale behind this choice hinges importantly on the precepts of domestic price formation in socialist economies, as well as the practical obstacles encountered in the process of implementing such rules in these countries, as set forth in some detail in the preceding two Chapters. Seen within the wider framework of international relations, these pricing principles can in fact be interpreted as one concrete manifestation of the precepts of PEs regarding economic relations among independent states: full equality, territorial integrity of each country, respect for state independence and sovereignty, and noninterference in the internal affairs of other countries (Tarnovskij & Mitrofanova, 1968, p. 18).