Regionalization and Globalization in the Modern World Economy: Perspectives on the Third World and Transitional Economies

By Alex E. Fernández Jilberto; André Mommen | Go to book overview

3

CENTRAL AND EASTERN EUROPE:Catching up or marginalization in the European free trade zone?

Hans van Zon

In this chapter the consequences of trade liberalization for the associated countries in Central and Eastern Europe 1 as foreseen in the association agreements with the European Union (EU) and their position in the international division of labour are discussed, especially in relation to the eventual emergence of new regional economic blocs. First, the heritage of the socialist past upon present international economic relations of associated countries is analysed. Until the late 1970s leaders of the socialist countries believed in the system of two competing world markets and the growing share of their socialist countries in the world economy and fast expanding mutual trade. The ‘socialist world market’ functioned on different principles from the ‘capitalist world market’. International economic relations between socialist countries were planned and based mainly upon clearing arrangements, i.e. in practice, barter trade. They were channelled and controlled through the central state apparatus, mainly foreign trade organizations. Enterprises usually did not know their suppliers and customers abroad. International economic relations were mainly confined to trade in tangible commodities. Trade in services, Foreign Direct Investment (FDI) and international capital flows were negligible. Although there were international specialization agreements within the Commission for Mutual Economic Assistance (CMEA), specialization within the CMEA was weakly developed. Related to this, the share of intra-industry trade was very low. Within the CMEA, international economic relations were above all centred on the Soviet Union as the dominant power in the CMEA. One unique aspect of the Soviet Union was that it was less developed economically than some of its satellite states. Trade between the smaller CMEA countries was on a very low level (see Table 3.1) and trade with the developed market economies was, on average, about 30 per cent of foreign trade turnover.

This system of international relations increasingly showed signs of stress from the early 1970s onwards. Since the first oil price shock (1973), within the CMEA prices of fuels and raw materials, the so-called hard goods that could be traded at the (capitalist) world market as well, began to follow world market prices, based

-54-

Notes for this page

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items
Notes
Cite this page

Cited page

Style
Citations are available only to our active members.
Buy instant access to cite pages or passages in MLA 8, MLA 7, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

(Einhorn 25)

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Note: primary sources have slightly different requirements for citation. Please see these guidelines for more information.

Cited page

Bookmark this page
Regionalization and Globalization in the Modern World Economy: Perspectives on the Third World and Transitional Economies
Table of contents

Table of contents

Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this book

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Help
Full screen
Items saved from this book
  • Bookmarks
  • Highlights & Notes
  • Citations
/ 368

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Buy instant access to cite pages or passages in MLA 8, MLA 7, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    Buy instant access to save your work.

    Already a member? Log in now.

    Search by... Author
    Show... All Results Primary Sources Peer-reviewed

    Oops!

    An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.