Korelsky, V. F. Fish, fishermen and fish industry in Russia / V. F. Korelsky. - Bremen : Krebs, [1993?]-.

loans, to organize an import of goods. In parallel with the general course and auxiliary measures, we must boldly deepen the economic reforms, develop market relations, private business and private property. 5.2. Relations Between Enterprises and Other Subjects of the Market Economy in the Transition Period For the economic system of Russia to acquire a qualitatively new form, to pass into a market economy, the scientific substantiation is needed of the approach to the solution of problems arising at every stage. Here we shall make an attempt to consider some aspects of the relationship between the subjects of different systems. The models of the market economic system shown in Fig. 12 emphasize the following factors. 1. The economic system considered in this figure is based on three sectors, namely, economies, business forms and the governments. Economies constitute the initial, primary, and the terminating elements of the scheme. 2. An economic system functions due to exchanges of resources, end products and finances between sectors on the corresponding markets. 3. Markets provide for a free circulation of production and financial resources, goods and services and the transition of capitals, and thus the movement of the whole economic system. 4. The market relations presuppose a free choice of a partner when natural resources, products, services, industrial capacities, shares and bonds are sold and bought. A change of market prices reflects an objective change of supply and demand. Fixing of prices inevitably entails either an excess of goods or a deficit, and this, in turn, leads to a loss of a regulator that ensures an exchange according to a real cost, and establishes a balance between the supply and the demand. In this way, all the relationships become deformed and faults occur in the functioning of the system. 5. A free formation of prices and price regulation are only possible when the following two conditions are satisfied: when every enterprise is interested in the maximum output of goods for sale and, second, when the monopolistic influence on the price formation is impossible either of producers or of consumers. 6. Governments positioned at the center of the scheme really occupy the central position in the economic system, ensure its motion by the fulfillment of the functions necessary for other sectors of the economy (the development of infrastructure, training of cadres, social insurance, etc.) and by distributing the means received as taxes. Thus, without interfering with the activity of enterprises and business firms, the governments ensure their ties within the economic system. 7. Constituting different state and administrative structures (federal, state-run, municipal, regional), the governments have an adjusted system of distribution between them of the means received as taxes and assign to these structures definite forms of activity (financed from the budget) and thus supplement one another and ensure functioning of the whole national economy as a single system. 1 2 9

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