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national variations in policy stance

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    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.K. industrialized policy has been changed so many times that some people refer to their policy as inconsistent. Through the 60’s the government had implemented changes to encourage the major companies in certain sector to form mergers so that competition would be enhanced globally. In the 70’s the government began to support small business to increase the competition internally. One feature that the U.K. has in common with the rest of European countries is the regional policy. The regional policy encourages growth an investment in areas of the country where the economy is not as influential as in the other major business sector of the respective country.

    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.

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