1.25 business management

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GIHRMSEMINAR5.pptx

3203 – Globalisation and IHRM

WEEK 5

Market Economy

2

Liberal Market Economy (LME)

Ex: USA, Canada, Australia

Weaker presence of unions & less state intervention

Lower Taxes & Partially-developed Welfare Systems

Coordination done through market dynamics

High capacity for scientific innovation

Successful in the Tech industry

Coordinated Market Economy (CME)

Ex: Germany, Japan, Sweden

Strong presence of unions & strong state intervention

Higher Taxes & Larger Welfare System

Higher job security & better training and development

Particularly good at “process innovation”

Successful in the Manufacturing industry

Exercise

You are the head of HR for an Engineering firm.

What are the Political, Economic, Social and Technical factors impacting your business within the context of a CME Vs an LME?

Discuss this with your group (15 – 20 minutes)

Thank You

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