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(4) Government

Countries also differ in terms of the degree of government intervention in their economies and protectionism of their markets. Government intervention is usually in the form of market regulation. A representative measure for government intervention in the economy is regulation around takeovers.
The US and, to a lesser degree, the UK have weak takeover barriers and it is mostly up to individual companies to design anti-takeover measures.

Conversely, in countries such as France, Germany, Italy and Japan, government intervention often provides strong takeover barriers, such as golden shares, which bestow on the holder veto power over changes to the company's charter.

The various hindrances to hostile takeovers in many continental European countries continue to make it difficult for foreign companies to make acquisitions across borders in Europe in 2001, plans for a Europeans takeover code, which would guarantee the right of shareholders to be consulted during bids, were shelved following objections from the German government, Sweden, which falls in the Continental governance model, is one of several countries that use multiple voting right to help prevent its companies from becoming vulnerable to takeover. France is also particularly active in preserving national ownership of major companies.

(5) Employees

Two main variables differentiate employees as a collective group, across countries. First, the country's labour market will influence the flexibility and mobility of employees. Countries such as the US that have employment at will, whereby a contract can be terminated at any time, are likely to have flexible labour markets and short-term labour commitment. Generally, the consequence is that labour training is done outside the company and employees have general and portable skills.

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* Contributed by: -
Dr. R. P. Verma,
Ex. H.O.D. & Dean, Commerce and Business Management Dept.,
Arabinda Bhandari,
Strategic Management Researcher,
Ranchi University, Ranchi.