The Problem of International Values: Mainly from a Hungarian and Japanese Perspective

Abstract

The international valuation of national labor was, and is, always a central problem for less developed countries : can they also gain from trade with the developed countries in making use of current comparative advantages or must they frst increase their productivity to prevent being exploited? Following the Second World War, both Eastern Europe and Japan were forced to recover and catch up with the developed Western nations but each adopted a different stand regarding comparative advantages. However, theoretical foundation based on the labor value theory is not sufficient to explain why less developed countries can only emerge as losers in international exchange. On the other hand, the developed countries can easily acquire foreign markets and gain from trade, due to high productivity and labor skills. The theory of international values also has actual relevance in explaining why the price level of the developed countries is higher, and is determining the real value of the exchange rate.