The National Business System

The world economies are divided between developed, industrializing, and undeveloped economies.

Early and late industrialization is a concept of an individual country national business system which has a comparative perspective.

The five major countries that have differences in the national business system are United States, United Kingdom, Germany, Japan and China.

The business systems are compared by the classification of performance and characteristics of the individual country.

Country’s performances are measured by the national income and gross domestic products (GDP). GDP is an indicator to determine the country economy. The value of goods and services that are produce in the country for that particular time period determines the size

Characteristic of the nation such as the role of the state, the culture of the country that influences the economy and the nature of the large enterprise.

Countries adopt modern economies in which it can be applied to the problems faced in the economic production in which to improve the standard workplace, government, management, finance system, infrastructure, import and export, consumption, law and society. Some of the country industry shift from agriculture to manufacturing, from a low cost to a high cost manufacturing. (Simon Kuznets, unknown)

With the introduction of technology and better management method, countries change from agriculture to manufacturing industry. With this, it increases its productivity and the national value of the country. Higher wages are given to employees and standard of living increase. People are motivated and innovative, new industries are formed and changes in the working process and meeting the consumption needs increases overtime.

However, as time goes by, the world experience shortage of skills worker. Technologies are more complicated and the time given to master the skills are

in 1996, 50 percent of the people in China are employed in the agriculture sector. Second modernization, is to move from planned economy to market economy. China’s aim is to attained socialist market economy with Chinese character. Third modernization is to promote new science and technology to enterprise in the sector such as electronics and biotechnology. Enterprise can benefit in managerial autonomy and these practices enable them in the commercial opportunities (Lu, 1997).

The government allows small scale private enterprise to be set up in the urban areas. Private business also grows rapidly. Banks remain as state owned. There is a reformation of the State Owned Enterprise (SOE) so as to strengthen the economy.

Farmers are now allowed to sell their surplus agriculture production in the open market. They are allowed also produce other products that they are currently selling. This is to increase the productivity of agriculture.

Slower changes occur in the heavy industry enterprise in the urban