Answer to Question #276222 in Management for Mila

Question

list the features of the two types of capitalist economies, that is the Coordinated market economies (CME's) and the Liberal market economies (LME's) and discuss their similarities, differences, advantages and disadvantages to the employers

600 words

Answer 1

Similarities

·        Both members in CMEs and LMEs are members of unions.

·        Both members in CMEs and LMEs have skills that are company specific or industry allied.

Differences

·        LMEs have a competitive relations with their other firms in the same industry while LMES have a relationship that is collaborative.

·        LMEs rate of members belonging to unions is low while the rate in CMEs is very high.

Advantages

LMEs and CMEs improves supplier relations as well as relationship with the stakeholders.

 Disadvantages

Unionization leads to disputes with employers and competition among firms leads to rivalries in the industry.