ABSTRACT
As a country with a big industrial potential, but a limited domestic market and no raw materials to speak of, Czechoslovakia would be hard put to maintain her economic existence if she did not develop intensive trade contacts with all parts of the world. Whereas in every normally operating economy the full burden of business risk is borne by firms exposed to the pressure of a demanding world market, Czechoslovakia has allowed her socialist enterprises to exist apart from world competition. The economy lets many highly unprofitable products escape to the less sophisticated markets, which in no way contributes to stability, if only because such trade is usually conducted on credit and the terms are steadily deteriorating. When the firms now enjoying protection have to bear the consequences of any losses they incur, they will at last be forced to look for effective production programs and for profitable export lines.
