Will The Rhine model of capitalism be the preferred capitali essays

Will The Rhine model of capitalism be the preferred capitali essays Peter Ludlow, Director of the Center for European Policy Studies once said We are all Germans.... The whole EEC is obtaining German virtue- low inflation, a strong currency and a good mix of growth and social welfare (Hampden-Turner and Trompenaars 201). Although the European Union has changed since Ludlow spoke about the European adoption of the German social economic system, Germany remains to be the most important aspect of the European Union. After the Second World War that ruined the European economies, the Rhine model had reign over Europe. Although they had strong control, the Rhine model is now struggling and is losing grip on the European economy. On the other hand, the Anglo-Saxon model of capitalism is catching up and is ahead in areas such as shareholder value and corporate governance, not to mention information technology (Hunt). Nowadays the European Union is split up in two segments of both Rhine model and Anglo-Saxon capitalism, but eventually the Rhine model will be accepted as the preferred capitalistic system in the European Union over the Anglo-Saxon model. The other major capitalistic system is the Anglo-Saxon that has its roots in the British economy. In both the United States and the United Kingdom Anglo-Saxon capitalism, which is also known in the United States as the Anglo-American model, is the leading form of capitalism. Madsen Pirie argues that the Anglo-Saxon model capitalism is based on two basic philosophical principles. The first is the adversarial principle. It basically means that there is a competitive market. Pirie states the market is a battlefield in which ritualized combat takes place. There is a constant battle for supremacy in the market, where everyone is on their own. The second principle is the evolutionary principle. In addition, the theory says that change is not best accomplished by sudden and violent disruptions which overthrow the status quo...