Business System

The distinctive sys­tem of a nation’s business organizations. The interaction of economic (actors and social institutions within different coun­ tries has evolved in different ways. Business systems acquired their distinc­tive characteristics at an early stage of the industrialization process and they have subsequently developed and adapted to their environment. This helps to explain why the business systems in, say, Britain, Germany, and Japan have devel­oped in different ways, as a result of such institutional factors as the system of government, the financial system edu­cation, and training. and industrial rela­tions.