Sample Term Paper
The reason for these two countries having such a dissimilar structure mainly pertains to the fact that US was one of the countries which was victorious as a result of the World War II and therefore was able to take advantage of a more efficient workforce at home.
More over the company invested in military communication systems and technology which aided the country to develop its economy and infrastructure based on this technology. Many small scale niche industries providing specialized products to businesses and consumers sprung up which were successful in the 60’s and 70’s resulting in economic boom. This contributed largely to the GDP of the country. Aside from this the country also adopted a consumerist attitude towards its budgeting and spending policies both in terms of the economy as well as the market. At this time the corporations gained strength and were able to form and control the economy for the United States. An article by Richard Ellsworth in 1985 stated that meanwhile the country was able to earn short term profits from its growth through a consumerist attitude in the long run “the market standards for shareholder returns and financial leverage lead to corporate financial goals that divert executives’ attention from the product-market needs that build long-term competitive strength.” (Ellsworth, 1985) He depicts in his article that West Germany organized structure where the goals and the objectives of the company drives the growth in the economy. This is further enforced by their current capital structure. The US model is the structure of financial systems such that the financial markets existent in the region play a major role in influencing the economy.
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