National variations in Policy Stance
The major industrialized nations of the world have all had their similarities and differences throughout time. The U.S., currently begin the strongest economy in the world is among some of the few countries that has been trying to begin free trade throughout the world economies. The E.U. is also starting to begin the processes of free trade throughout their Union.
The U.S and the U.K. have more in common than the European and the Asian economies. One of the main trends that began in the 1980’s throughout the major economies of the world was deregulation. Deregulation is the process of the government being more lenient with the economic activities to increase and create a more free state of competition. In the third world countries deregulation is thought of as also privatization. Governments’ privatization usually consists of the companies in the energy (electricity), telecommunication, and gas sectors like in the case of Brazil currently.
France has a very state oriented industrialized policy in which it helps support the major businesses throughout the economy. The government also holds major control of the financial institutions which allows the government to direct certain funds toward major sectors of the economy. Directing funds to industries increases a country’s international competitiveness.
Germany has the economic power divided between the government and the provinces (like states.) German has pride itself on internal competition along with an internal agreement between labour unions, major banks, and interest groups. Recently German has helped the major manufactures that have been in financial trouble. Currently there exists problems due the reunification of the Eastern block with the western block. There is high trade deficit, high unemployment, and high inflation due to the interest payments due from the trade deficit.
The U.S. has had a policy that would encourage internal competition. The regulatory system is there to promote investment opportunities in the private sector of the economy. When the time comes the government will intervene to make sure that a major corporation will not fail due to economic troubles or recession. There is also a high amount of funds allocated to the defense sector of the U.S., which provides for a lot of jobs and influence of the U.S. industry.