In the Socialist Nation, everyone is expected to live within their own means of production, regardless of whether there is any international trade or not. Even so, there will always be moments where the State will be conducting trade with other nations that may not necessarily have Currencies pegged to the Work-Standard or are cordial Socialist regimes. In a regular Real Trade Agreement conducted between two Currencies under the Work-Standard, one country will have the Arbeit and the other country will have the Geld. Just as how the Totality contribute Arbeit to their own State and receive Geld, something similar will become applicable to different States.

Let’s begin with two Socialist States with Currencies pegged to the Work-Standard, “State A” and “State B.” State A can give either Arbeit or Geld to State B, State B sending either Arbeit or Geld to State A. State A may theoretically give State B both Arbeit and Geld if State B is able to return the favor by sending both Arbeit and Geld to State A. Neither State is going to give the other State anything without expecting something back in return, just as their Totalities expect to be given Geld for their Arbeit under the Work-Standard. That is the Implicit Intent behind why the concept of a Real Trade Agreement (RTA) must stress the need for an exporter and an importer to maintain a Balance of Trades and Payments.     

Certain accommodations may be made by the two States in their RTA in the context of “Economic Foreignization.” We can expect up to three different modes of Economic Foreignization within two different pivots of Real Trade: Bilateral and Multilateral.

Bilateral Real Trade

State A could allow State B to have one of its Enterprises establish a presence within State A. From there, State A will then be able to receive the Arbeit from that “Foreign Enterprise” because it can be argued that most of the people working there are the legal citizens of State A. State B, meanwhile, retains ownership of that Enterprise and will be receiving the Geld. Alternatively, if State A does not have anyone who can operate the “Foreign Enterprise,” it is possible for State B to allow their own citizens to work abroad. State B gets the Arbeit as the owner of the “Foreign Enterprise” and State A will be receiving the Geld.  

If there are any foreigners from State B and any citizens in State A involved in the day-to-day affairs of said “foreign Enterprise,” States A and B will need to split the Arbeit and Geld. The amount varies and there are plenty of possibilities where either State could gain a trade deficit or a trade surplus. Certain contexts may even require both States to receive 50% of the Arbeit and Geld each, State A receiving 75% Arbeit and 25% Geld and State B receiving 25% Arbeit and 75% Geld, or vice versa for the reverse. It is up to those two States to decide for themselves how they wish to proceed to ensure a proper Balance of Trades and Payments.   

Here, we encounter once again the Political Organization Problem. How does one reconcile the fact that not all Socialisms are the same? How are our Economic Planners, Accountants, Inspectors, Administrators, and Civil Servants supposed to conduct themselves if they decide to pursue their Vocations in other countries? Can we expect MTEP (Mission-Type Economic Planning) to continue in Socialist countries with some form of STEP (Soviet-Type Economic Planning) like the PRC, Vietnam, DPRK, or Cuba? How do we expect our version of Economic Planning to operate within countries employing limited degrees of Economic Planning such as Japan, Taiwan, France, Venezuela or Russia? What about countries that do not employ any Economic Planning like the EU/NATO member-states or America under Jeffersonianism?  

Everyone pursuing their Vocations abroad are expected by the State to demonstrate fluency in the language and familiarity with the culture of their destination. They may like, dislike or be indifferent to the People’s Party (or the ‘Ruling Party’, if the regime is Liberal Capitalist) of the destination, but they need to be made aware that they are only there on behalf of the diplomatic consulate at the embassy, which is going to be located somewhere in the foreign nation’s capital. As for the Intents of Command and Obedience, our State will only allow Enterprises with an Economic Organization Rank of “National-Socialized,” “State-Owned” or “State-Administrated.” A State-Administrated Enterprise that works abroad is always under the direct command of our State, a State-Owned Enterprise under our State’s indirect command. We can expect most of our Enterprises working abroad to be National-Socialized Enterprises, which is under the command of the hosting State’s Intents of Command and Obedience. The NSE is more flexible in the international movements of Arbeit, Geld and Information than the SOEs or SAEs. While NSEs are always the last Enterprises to leave in the event of strained diplomatic relations, whatever economic organization that acted as their superior is likely to be an SAE or SOE.

Multilateral Real Trade

Multilateral Real Trade will only be made available once there are at least three or more countries with their Currencies pegged to the Work-Standard. Going back to the established scenario, State A and State B are joined by States C, D and E under the terms of a revised Real Trade Agreement. The five States agreed to allow fifteen NSEs, SOEs and SAEs to operate in the other four States. The basic premise from earlier still applies, except now they include concepts drawn from SMP Compendium Entry “The State and the Socialist Conception of Property.”  

Any NSE, SOE or SAE sent by State A to States B, C, D and/or E will be sent back to State A. States B, C, D and E keep the Arbeit from the Enterprises of State A because everyday operations are being done by the citizens of those four nations.

Alternatively, Alternatively, if neither of the other States does not have anyone who can operate the fifteen Enterprises, it is possible for State A to allow their own citizens to work abroad. State A gets the Arbeit as the owner of those Enterprises and State A will be receiving the Geld.  

If the fifteen Enterprises from State A have its own citizens working alongside the citizens of States B, C, D and E, State A has two options. Either State A arranges with each of the other four States on separate rates based on a per-State basis or sets the rate with the other four States together before their Heads of State sign the RTA. This phenomenon is called a “Solidarity Preference,” and we can expect the rates of Arbeit and Geld to not be uniform. The challenge here is more different than simple Bilateral Real Trade between States A and B, but the general premise is still the same regardless: all five States must decide for themselves and their Totalities on the international agreements that they are bound to uphold under international law.

Categories: Compendium

Tags: Economics, Finance, Philosophy, Politics, Psychology, Socialist Finance, Third Place, Work-Standard