ABSTRACT
This chapter evaluates the opportunities which exist to incorporate the Soviet Union into the global economy and the obstacles standing in the way of this. The Soviet Union's desire to play a more active role in the world economy seems to be genuine, and such a development will be welcomed in the West if the necessary improvements in its economy are brought about in a fair manner. The economy of the Western world is undergoing possibly one of the most profound transformations experienced since World War II. In an economic environment, the Soviet Union is in an awkward position since the source of its power has traditionally been military rather than economic strength. Marketization of the economy and the introduction of competition can be effected where there is flexibility on the supply side: if the supply of materials is tight or centralized, firms will not be able to react quickly to a shift in the market.
