Globalization and the Convergence towards the Anglo-Saxon Model

RUNNING HEAD: BUSINESS MANAGEMENT 0
BUSINESS MANAGEMENT
Globalization shows that most countries are converging towards the
Anglo-Saxon model.

BUSINESS MANAGEMENT 1
Globalization refers to the extent of the goods, equipment, information and work across the
national boundaries and traditions. It helps in increasing the living standard of the poor people in
the countries which are less developed by providing various opportunities of the job, innovation
and enhance the opportunity to approach the services (Stiglitz, 2015).
Globalization demonstrate that the largest part of the countries tend to meet towards the model of
Anglo-Saxon rather than Rhine model. As the Anglo- Saxon model refers to the open market
economy which has few rules on the subject of the labor markets and the model encourages the
innovation which helps in taking the competitive advantage and results in better wealth. This
model exercises the common law which works with lay jury. It results in widen the lawful
principles and oral opinions. It is based on the belief that intervention of the government in the
country should be minimum (Discenza, 2017).
The Rhine model is the socio-economic model which combines the open market capitalist
financial system along with societal politics that creates the fair competition inside the market
and a state of welfare. It is also refers as the coordinated market nation. The core of this model is
to observe the private markets are the most efficient allotment device, but the production is
increased through sound state macroeconomic administration of the nation (Deeg & Jackson,
n.d.).
The Anglo-Saxon Model superiority over the Rhine Model
Most countries are adopting Anglo-Saxon model because it helps in accomplishing the effective
procedure when the companies expanded their business in other countries. The corporate
governance in this model is performed in the interest of the shareholders. This model helps the
company in increasing the profits. It is considered superior than the Rhine model because the
structure of the rights is greatly expanded. The huge amount of the shares ownership is belongs
to the individuals (Farkas, 2016). In the Rhine model the companies are work groups of people
that only present when a permanent worth is added and the necessary funds comes from the
private shareholder.

BUSINESS MANAGEMENT 2
Globalization of the companies
The globalization is considered the mixture of employee’s traditions, business around the globe
in both the urbanized and emerging countries. Globalization of the companies is done when the
interest of all parties is taken into account and in this model the owners of the shares are not only
the small shareholders but also the investors of the institution. When the company expands the
business, it needs to finance the business in greater amount, for this the Anglo-Saxon model is
concentrated on the share market. This proved to be more superior to the Rhine model because
Anglo-Saxon model is the model of open-minded capitalism, which describes that the business
and the companies are independent, self-directed financial agents characterize by the extremely
competitive association in the market (Stiglitz, 2015).
Organizations prefer The Anglo-Saxon model
Organizations prefer the Anglo- Saxon model because is concentrated in fundamental
innovations which require high risk. Nowadays companies use innovations which are executed in
countries with open-minded economics. Realization of the business ideas in the process of
innovation is carried out at the cost of financing the business enterprise. It is one of the reasons
that explain the big proportion of capitalist’s enterprises in the countries. It is considered to be
the superior with the Rhine model because in this vocational training of workers are done at the
point of common information and skills attained within the limits of official education. In this
method, the standardized testing is used for computing the results and competition. It creates
more job opportunities and better environment of work which helps the low income employees
to earn high earnings and provides greater work incentives and for the countries like Germany
and the France which are under pressure with increasing unemployment and inactive economies,
it is considered poor for employees as well as accomplishing a return close to full employment.
Globalization leads many different cultures to work together in the corporations as this Anglo-
Saxon model is considered best in adjusting the culture and work with harmony as compared to
the Rhine model (Macdonald, 2017).