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Firms in Context to Liberal and Coordinated Market Economies - Essay Example

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FIRMS ARE ONE AND SAME ALL OVER THE WORLD: IN CONTEXT TO LIBERAL AND COORDINATED MARKET ECONOMIES By INTRODUCTION: Overall world has been divided into different countries and regions, and each of these countries have their own respective policies and practices (Albert, 1993)…
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Firms in Context to Liberal and Coordinated Market Economies
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Download file to see previous pages However, it is important to explore that because of different types of economies and different systems of governance, the firms all over the world are operating in similar manner or not. For understanding this concept it is first important to describe what are firms or organisations and what are their aims or objectives. Firms or organisations are a collective set of people who are striving to achieve a common goal or target. The main aim or objective of almost every other firm is of maximizing the overall profits and revenues. It is difficult to conclude that firms or organisations are similar in different social setups and economies or not. Different researchers and analysts have presented several theories in order to answer the complicated question that is there any difference in the firms and management across different societies and economies (Dore, 2006). Two most popular categories of theories in this regard are universalistic theories and particularistic theories. According to the universalistic theories the firms are same all over the world and are subject to same rules and regulations. ...
This has given rise to the concept of the international business and globalization. Organisations are composed of different humans, and the basic characteristics or features of human behaviour are same all over the world (Koen, 2005). On the other hand, according to second school of thought, firms and organisations are different across different economies and societies because of the different preferences and expectations of the management. It is important to consider the impact of the history and culture on the operations and organisational culture of the firms. It is not possible to change the basic culture or history of the firms and there is always a certain level of difference among different firms which cannot be disappeared even by globalization (Koen, 2005). In this paper an attempt has been made to explore and investigate that whether firms are same all over the world or not. For this purpose, emphasis has been placed on the firms in liberal and coordinated market economies. Nature of operations of organisations operating in liberal market economies has been compared with the nature of operations of organisations operating in coordinated market economies. In order to better understand the difference and similarities in the firms in these both types of market economies, characteristics of each type of market economies are also explored. Along with this the universalistic and particularistic theories are also further explained and investigated in the process of finding an answer to the questions under study. Finally, the impact of globalization on the firms and organisations has been examined. UNIVERSALISTIC THEORIES: According to the universalistic theories, organisations are exposed to same laws and ...Download file to see next pagesRead More
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