Question

Short Descriptions: In two to three coherent sentences, explain and/or define each of the following concepts.

A- Flexicurity

B- Wage drift

C- Keiretsu

Answer 1

Flexicurity us a combination of the words flexibility and security. It refers to the combination of labor market flexibility and the security of the workers. It is a model in which the state plays a key role in the protection and promotion of the well being of the economy.

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Sometimes the wage actually paid to a worker is not same as the locally negotiated wage. Wage drift is the difference between the negotiated wage and the wage actually paid. For instance, if the labour works for more hours than pre-decided then he must be rewarded with more wage than pre-decided, that is the negotiated wage.

Keiretsu is a set of companies in with underlocking business and shareholdings. In Japanese Keiretsu means group. It is a type of informal business group. The formation of Keiretsu allows the manufacturer to establish stable and long term partnerships. In Japan, Keiretsu maintained dominance over its economy in a major part of the 20th century.