Neo-liberalism is a concept that focuses on the idea that countries are supposed to be concerned primarily about unconditional gains and not relative gains (relative to other countries). It is a concept that stemmed from Germany in the period between the First and the Second…
Neo-liberalism works to move a part of the economy’s control to the private sector from the public sector. That is to say that neo-liberalism is an economic conception that values the ideals of free and unregulated market and globalization. Therefore, neo-liberalism occupies a fundamental position in the theory of International Relations.
Neo-liberalism is a concept of political and economic practices that put forwards that human welfare can best be developed by liberating personal industrial freedoms and expertise inside an institutional framework typified by sound private property rights, unregulated and free markets along with free trade (Harvey, 2007). In the period after 1945, the liberals resorted to international institutions to perform several functions that the state could not carry out. This was the mechanism behind the integration theory in Europe and pluralism theory in the United States of America. Near the beginning of the 1970s, pluralism had built up a considerable challenge to realism and showed the way to neo-liberalism. Neo-liberalism stands for a more refined theoretical challenge to existing realism. They give explanation to the durability of institutions in spite of significant changes in circumstances. As said by neo-liberals, institutions exercise a causal influence on international relations, determining state preferences and fastening them in to two-way co-operative arrangements. It concentrates on new players like transnational corporations, NGOs (non-governmental organizations) and new types of relations like interdependence and integration (Galbreath, n.d.). Basically neo-liberalism states that free trade and unregulated market along with unobstructed supply of capital will lead to the production of the most efficient products that are most economically, socially and politically viable. It emphasizes on the significance of sound institutions like property rights, freedom of agreement, open markets, rules of legal responsibility, ...
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It is however advised that both these aspects are intertwined, and will be studied in relation to each other, as organisational culture is profoundly shaped by national culture. Culture and the Organisation: Most authors agree with the traditional assumption that corporate or organisational cultures are predominantly influenced by the national cultures where the organisations operate (Mullins, 2003; Robbins, 2003; Hofstede, 1997; Hofstede & Hofstede, 2005).
India presents a large market opportunity for those who want to globalise their business and expand their clientele (Manian, 2007: 57). It is the third largest economy by GDP in relation to purchasing power. It is grouped in the G-20 key economies. Business in India is controlled by a strong domestic market hence for a business to prosper in the highly diverse economy; it has to resonate with the cultural norms that drive the thinking of Indians (Makar, 2008: 36).
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