MODERN BUSINESS in Comparative Perspective (EXAM PREPARATION) - Essay Example

The national business systems are influenced and affected by early and late industrialization, especially analyzing the past and present growth in the business systems. This paper will discuss the differences in the nature (institutional and organizational) and the performance of the national business systems from early and late industrialization by using relevant examples. DIFFERENCES OF NATURE AND PERFORMANCE OF NATIONAL BUSINESS SYSTEMSEARLY INDUSTRIALIZATIONIn early industrialization, the industrial revolution is the changes in social and economic changes that resulted from the use of hand tools to machines and the development of large-scale industrial production.

This was happened between the 17th and 18th centuryIn the late 17th century, the United Kingdom (UK) began the industrial revolution. Before industrialization, the people used to live in the rural area practicing farming. However, the countries had distinctive advantage in the manufacturing industry, especially in textile industry. Moreover, The development of the steam engine played important roles in ensuring an improvement in the banking industry. However, the UK banking industrywas lack of intermediation.

In the early 18th century, the United States (US) began the industrial revolution. After the civil war, the US industry was changed drastically. The railroads distributed goods and products everywhere; therefore, the production level was increased. Before industrialization, the organizational structure was under hierarchy structure. However, when the population in the cities increased after revolution, the country was decreased between rich and poor. Moreover, increasing in US industries improved in the banking industry.

The US banking industry supported many industries along with introducing the stock markets. Both early-industrialized countries focused on invention and innovation. The UK and US were creatively used in the textile and automotive industry with adequate support of the financial institutions where started growth of economies. Moreover, the manufacturing industries were set in these countries that marked the growth in the market share. LATE INDUSTRIALIZATIONIn late industrialization, Germany, Japan, and China implemented industrial revolution to enhance their economies.

Late or newly, industrialization refers to those countries whose level of economic development is between the developing and the first world classifications (Wyatt, 2009). This means that these countries have moved from the agriculture based economy to the industrialized urban economy. Some of the countries that are industrialized include Germany, China, and Japan.Germany (1st Paragraph)The development of the railway network fastened the transportation of goods from one place to another. In addition, through education, these countries produced more scientists thus becoming better in the technical field.

Industrialization led to the rise of the middle class and social labor movements. Moreover, Germany which was and still rich in natural resources like coal and iron, and a rich soil makes Germany to have an advantage. Additionally, the introduction of industrial protection in 1879 encouraged trade and growth of businesses.Japan (2nd Paragraph)In Japan, the threat by the west to economic backwardness and national sovereignty was the initial stage for the formation of a modern state. The banking industry emerged to provide investment capital and fund for local trade.

In 1870, the ministry of industry was created to operate certain industries as well as check the economic policy of the organization. The private sector was also involved in the development of Japans economy.China (3rd Paragraph)In China, there were the labor-intensive sectors that saw an increase in export-oriented rural industries. After the introduction of the open door policy, there was massive direct foreign investment. This led to an efficient allocation of labor resources thus boosted the economy of China.

** EXPLAIN THE INSTITUTIONAL, ORGANIZATIONAL, AND PERFORMANCE OF NATIONAL BUSINESS IN LATE INDUSTRIALIZATION ** ** THREE PARAGRAPH **In the early 1880’s oligopolistic firms became part of industrialization. This led to big businesses to diversify into more than a single industry thus leading to market concentration.