The paper "Varieties of Capitalism and Convergence versus Divergence" is an outstanding example of management coursework. The configuration of a country’ s employment is surfaced in different patterns of production profile, product line as well as the socio-economic tenets. Varieties of Capitalism provide viable challenge towards the existence of a singular form of capitalism especially in a free-market, which in turn influences the rate of employment. Capitalism advocates for the controlled interference of the government in the ownership of the means of production to eliminate the monopoly and bureaucracy in the employment and market.
In this context, there are various types of capitalism advocating for different strategies in the production to arrive into different economic strength. Capitalists argue that private ownership of the means of production in a country creates jobs instead of getting rid of the excess workers during the economic crisis to maximize the profits. The varieties of capitalism are essential in explaining the different forms and rates of employment in various sectors and economic institutions. Varieties of capitalism and varieties of economic relations The breakdown of the distinguished types of economies provides a platform under which the influence of the varieties of capitalism on employment relations can be discussed.
The coordinated and liberal market economies are configured in the ways that are relevant in understanding the logic behind the employment relationship argument. In this sense, liberal capitalism is designed in such a way that the economic activities are regulated by economic agents through competitive market arrangements. Overall market exchanges and formal contracts influence employment relationships. However, the coordinated market economies capitalism, the means of production is opposed to the relationships and competition.
The coordinated market economies employ the use of non-market coordination including the incomplete contracts and private network monitoring. While the coordinated market economies provide long-term relationships among the economic actors, the liberal market economies are configured to provide fluidity in market relationships. In the bid to understand the essence of the varieties of the capitalism in the regulation of the employment, it is important to evaluate the perspective of the importance of the system coordination as well as the idea of the institution complementarities. In this context, a country can be termed as capitalist due to the economic practices that allow the economic sub-systems to govern capital and labor.
The varieties of capitalism posit that the availability of well-configured sub-systems such as the financial system, labor market, training system and the inter-firm relations facilitates the productivity of the economic firms. Varieties of capitalism presume the existence of the systematic rationality governing economic activities that are separate from the social agreements. Comparison of Countries Employment Relations Proponents of the varieties of Capitalism argue that economic growth is favored by the bearable innovation and expansion of economies.
This, in turn, creates employment opportunities and therefore improving the living standards of the entire population. The more the income from the well developed and regulated means of production results into widespread jobs creation and the inter-firm relations, as well as the international employment, develops due to the increased investors. Varieties of capitalism assist in explaining the differences and similarities in employment systems and practices due to the varying methods adopted by various forms of governments. The differences are surfaced in the ways the governments are structured, the role and the financial capabilities of the government and the privately owned firms in generating income and employment.
For instance, in Germany, the state and industry level limits enterprise while Australia, Japan and Korea are operating enterprise linkages.