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The Interdependence between the Level of Domestic Prices and the Price Level in the Developed Countries

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Author Info

  • Angelica BACESCU-CARBUNARU

    ()
    (The Bucharest Academy of Economic Studies, Romania)

  • Monica CONDRUZ-BACESCU

    ()
    (The Bucharest Academy of Economic Studies, Romania)

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    Abstract

    The article deals with the controversial issue of price harmonization practiced in the European Union. Therefore, we take into account the differences between national economies of member countries and the time difference of these economies in EU, a thing that imposes the establishment of different harmonization periods. It is also raised the issue of price harmonization: by increasing the prices of commercial and non-commercial products in developed countries or by increasing the prices in less developed countries. There are also analysed different concepts and solutions, with their advantages and disadvantages, reaching the conclusion that prices, salaries and profits on the domestic market of a country have to be adapted to the reality in each country.

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    File URL: http://www.rmci.ase.ro/no12vol3/03.pdf
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    Bibliographic Info

    Article provided by Faculty of Management, Academy of Economic Studies, Bucharest, Romania in its journal REVIEW OF INTERNATIONAL COMPARATIVE MANAGEMENT.

    Volume (Year): 12 (2011)
    Issue (Month): 3 (July)
    Pages: 420-431

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    Handle: RePEc:rom:rmcimn:v:12:y:2011:i:3:p:420-431

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    Related research

    Keywords: single price; commercial products and services; non-commercial products and services; Balassa-Samuelson effect; Pierre-Noel Giraud theory; purchasing power parity.;

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    1. Bird, Richard M. & Martinez-Vazquez, Jorge & Torgler, Benno, 2008. "Tax Effort in Developing Countries and High Income Countries: The Impact of Corruption, Voice and Accountability," Economic Analysis and Policy (EAP), Queensland University of Technology (QUT), School of Economics and Finance, vol. 38(1), pages 55-71, March.
    2. Alm, James & Torgler, Benno, 2006. "Culture differences and tax morale in the United States and in Europe," Journal of Economic Psychology, Elsevier, vol. 27(2), pages 224-246, April.
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