Question

in your opinion, what are most important advantage and disadvantage of (a) the anylo-saxon model of capitalism,(b) the european model of capitalism ,and (c) the asian model of capitalism.

Answer 1

a. Anglo-Saxon capitalism or the Anglo-Saxon model is a form of free-market economy that exists in the rich English-speaking nations. Namely, the advanced economies such as the United States, United Kingdom, Canada, Australia, Ireland, and New Zealand

Advantages are:

Anglo-Saxon capitalism – fewer regulations

The Anglo-Saxon Model also has stronger property rights and contract enforcement. There are lower barriers to free trade.

In fact, many companies claim that doing business in the Anglo-Saxon Model nations is easier. There are also fewer regulations regarding labor markets.

Anglo-Saxon capitalism – more innovation

Supporters of the Anglo-Saxon model argue that it is better at promoting innovation. Furthermore, the Anglo-Saxon model creates competitive advantages that result in greater overall wealth, they add.

Advocates of the continental model say their system has less inequality than Anglo-Saxon capitalism. Continental model supporters also claim that their system has lower levels of poverty.

Disadvantages are:

Opponents of Anglo-Saxon Capitalism

Opponents of the Anglo-Saxon model add that it neglects the interests of stakeholders. The term ‘Stakeholders’ refers people who may have worked for the company for a long time.

Additionally, those against Anglo-Saxon capitalism claim that stock markets, where emotions dominate, are too volatile.

Continental Model supporters prefer having knowledgeable bankers making decisions regarding investment financing.

Proponents of Anglo-Saxon capitalism say that banks can get too friendly with companies, and subsequently cannot be impartial. Capital markets punish companies that fail in their business plan

b. The european model of capitalism- Comes from the economic principles of 19th century France and germany

Advantages are;

Uses Civil law which is based on professional judges, legal codes and written recors

Disadvantages are:

Calls for more state intervention in the economic activity.

c. The Asian model- The Asian model is more similar to the Continental Model than the Anglo-Saxon model. It focuses on greater rates of capital formation.

Examples of Asian models are the economies of Hong Kong, Taiwan, Japan, Singapore and South Korea.

Advantages are:

Direct support for state-owned enterprises in "strategic sectors" of the economy or the creation of privately owned national champions

Disadvantages are:

The Asian model exists in a variety of forms, rather than just one. Additionally, this model involves a significant amount of experimentation.