The 21st Century has witnessed Asia’s rapid ascent to economic prosperity. As economic gravity shifts from the Western world to the Asian region, the “tyranny of distance [between states, will be] … replaced by the prospects of proximity” in transnational economic, scientific, political, technological, and social develop relationships (Australian Government, 1). Japan and China are the region’s key business exchange partners. Therefore these countries are under obligation to steer the region through the Asian Century by committing to these relationships and as a result create business networks, boost economic performance, and consequently necessitate the adjustment of business processes and resources in order to accommodate each country’s
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It is important to note in the 1980/90s most countries in the Western hemisphere and Asia restructured their IRs systems. This episode can be attributed to factors specific to these countries; but owing to the fact that most of Asia’s economies are linked to the global economy, it is posited that this process may not have been coincidental but it was occasioned by competitive pressures in the global labor market (Kuruvilla & Erickson, 2002).
In practice, the IR systems are organized along these associations: employees and trade unions; employers and their federations; and the state and its agencies in charge of work place and community affairs (Bamber & Leggett, 2000). However, it is argued that besides these institutions, as economies strive to attain the Industrialized Market Economies (IMEs) status, the intervening technological, social, and market forces will tend to push the emerging economies’ IR systems (e.g. China) to adopt IRs practices prevailing in the existing IMEs like Japan (p. 2). Nonetheless, the degree of uniformity is to a great extent determined by the transnational political contexts as exemplified by the role of government in determining the types of IR systems that best