ABSTRACT
The importance attached to trade by the authorities in Socialist countries has never been great because it is considered that its contribution to material production is limited. Compared with capitalist countries, the trade network and services are poorly developed. Trade margins are usually less than 10 percent of the retail price, compared with about 30 percent common in the West. Socialist domestic trade is almost exclusively concerned with consumer goods. Trade provides a link between production and consumption. But the role of this link in the Socialist economy is different from that in a market economy because in the former both production and consumption are centrally planned. In contrast to capitalist countries, Socialist economies have been continuously saddled with seller's markets noted for an excess of aggregate demand over supply of consumer goods at the official prices, and the consequent privileged and dominant position of producers and distributors over consumers.
