Capitalism and Its Influence on Globalization Essay

Introduction

The aspect of globalization has caught the attention of many people. It has watered down to make the whole world become a global village. The advent of information and technology has contributed largely to the reshaping of the whole world.

The varieties of capitalism approach have attracted heavy attention and provoked a huge number of debates (Wailes, Lansbury, & Bamber, 2010). Some of the approaches in the varieties of capitalism include the modernization approach. In the rebuilding of the devastated world after World War II, this approach focused on the government’s capability to create necessary impetus that will lead to economic growth. This approach was, therefore, growth centered. The paper seeks to discuss the varieties of capitalism available and their effect on globalization.

Analysis

One of the capitalist aspects is neo-corporatism, which focuses on the capability of members in society to facilitate growth through working together. The differences in economic and political structures that occur in any country are based on the differences in the systems of governance. However, these differences are on the verge of dissolving as the countries embrace the concept of globalization.

To others, it may occur as a better approach to sustainable historical choices. Under the concept of social systems of production, there is sectoral governance, national innovation systems, and flexible leadership that is diverse in some aspects. This alternative approach puts less emphasis on trade unions. The neo-corporatist approach is much centered on the organizational structure of the society, with a greater emphasis on trade union movements (Wailes, Lansbury, & Bamber, 2010).

This capitalist approach addresses two globalization concerns. The first concern is whether there is expected convergence in socio-economic institutions in response to globalization. The last concern is whether there will be a looming political backlash against globalization. The major market economies are liberal and coordinated markets. Market economies that are liberal allow coordination of activities by economic agents. In sharp contrast, coordinated market economies are very effective in non-market modes (Wailes, Lansbury, & Bamber, 2010).

The varieties of capitalism help in answering two perspectives. The aspects are the varieties of capitalism openness and its influence on the actors’ preferences on domestic issues and vice versa. Most firms operating on either LMEs or CMEs have developed distinctive strategies that will help in market and non-market coordination of the economy. It is widely evidenced that firms in different economical situations react differently to almost similar challenges. Reconsidering the concept of globalization, many firms will shift to off-shoring when cheap labor is offered abroad. Cheaper labor that has excellent skills is always attractive for most firms (Wailes, Lansbury, & Bamber, 2010).

Conclusion

Varieties of capitalism approach help in the study of globalization and employment relations. The shift is made from the focus of one single institution and the connection between several institutional arrangements. Varieties of capitalism are therefore geared to overcome some of the challenges that were experienced in institutionalism and give leeway to the study of globalization and employment relations. It provides a relationship between corporate governance and labor management. In conclusion, the varieties of capitalism approach reject the common notion that there is only a single way to organize capitalism, and make a point on how institutional arrangements play a vital role in determining how societies function (Wailes, Lansbury, & Bamber, 2010).

Reference

Wailes, N., Lansbury, R.D., & Bamber, G. J. (2010). International and Comparative Employment Relations: Globalization and change. New York: Sage Publications.