Revisited the Insurance of Contractual Prices in the Timber Processing Complex

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Abstract

A price fixed in the contract, acts for a certain period of time, when the level of the contract price may be the subject to certain fluctuations under the influence of various reasons. Therefore, for the long-term transactions there is a problem of contractual prices with regard to the time factor. As a rule, the longer the time period of the contract, the more difficult to resolve the issues related to the insurance of the contract prices. There are various methods of insurance prices in the contractual practice. An agreement with a transaction price virtually shifts the inflation risk of loss to the supplier. An agreement with the actual price, on the contrary, shifts the risks fully to the consumer. The insurance of contract prices, primarily is aimed at stake both suppliers and customers in the distribution of risks. The experience of foreign business approves sliding-scale prices as the most productive form of adjusting of contract prices in terms of inflation. The article presents the methods of calculation of sliding-scale prices relating to the performance conditions of wood enterprises. According to the author, the proposed method more properly allocates the inflationary development risks between suppliers and consumers. 

Authors

• V.I. Mosyagin, Doctor of Economic Sciences, Professor
  St. Petersburg State Forest Technical University named after S.M. of Kirov,
  Institutskiy pereulok, 5, St. Petersburg, 194021, Russia;
  е-mail: public@spbftu.ru; mr.vladimir1939@mail.ru

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References

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