Woche 12

• Economic landscape is diverse and there are major difference between countries
• Western countries are more developed than eastern countries
• "Full or flawed democracies" refers to the categorization of countries based on their level of democratic development. These terms are often used in democratic indexes to assess the state of democracy in a country.

• Political stability
• Wealth is more evenly spreaded (for ex: in comparison to the US)
• Larger amount of people that are relatively wealthy = more potential customers

1. Market Capitalism
2. Managed Capitalism
3. State Capitalism

1. Market capitalism: Dominant economic system in many developed countries

• Few state companies: "State companies" refers to companies that are owned and controlled by the state or government of a country
• "Financing on the financial market": The process by which individuals, companies and governments raise capital (money) by participating on the financial markets. (government want the companies to develop)
• Opposing labor relation: In an adversarial environment, the interests of employers and employees often clash, and there is tension over wages, working conditions, benefits and other work-related matters. The state does not intervene in employer&employee relations!

(Great Britain, Ireland)

Managed capitalism - state steers and controls the market economy through regulation and intervention in order to promote social equality and economic stability.

State organize the economy- indirect support for example a proper education system

1. Indirect support for economy: Friednly environment, proper education, R&D
2. Network oriented economic model: Strong prfoessional Associations (berufliche Verbindungen) / Ties betweendifferent players in industry (Lets do this togheter mentality) / banks are included
3. "Welfare State": state system that provides financial support and protection for citizens: social transfers like old-age provision, disability, unemployment compensation, social security

(Germany, Austria, Finnland, Sweden, Denmark, Norway, Netherlands)

State capitalism refers to an economic system in which the state or government plays a significant role in controlling and managing the means of production and economic activity. Govements are involved into labor relation.

• State intervenes directly into strategic industries
• State owned companies
• Regulation of relationbetween players in the industry
• Tendency to protectionsims
• Financing

(France, Italy, Spain, Portugal, Greece)

1. EU-Comission
2. European Parliament
3. European Council
4. Counil of the European Union
5. European Court of Justice