ABSTRACT

This chapter suggests that the notion of a convergent development of the region toward a Western-style structure in terms of the economies and governments is perhaps simplistic and that observed conduct seemingly in conflict with the expectations of Western experts may, reflect a combination of traditions and the prevailing environment. In socialism, firms were tied into the Council for Mutual Economic Assistance network which included the state-owned enterprises in all member countries and established a strict division of labor in terms of industries and products. However, even in developed market economies such as the United States, aspects other than market efficiency can play a critical role as the Chrysler bailout demonstrates. In a market economy actors expect that their counterparts will adhere to the law and fulfill their part of a contract as negotiated. The chapter also presents an overview of the key concepts discussed in this book.