INTERNATIONAL BUSINESS

International Business

International Business

Introduction

In transforming the societies, there are many economic inequalities that occur in one of the many areas where the past meets the future with an uncertain situation. The government or the ruling authorities undoubtedly brings it with more than just a shift from equal distribution of economic resources to an unequal distribution, from a system based on political privileges, to a system based on economic rewards and social principles of allocation with respect to the market principles. This process is versatile and complex in nature. In fact, the authorities and the government find it difficult to follow a predictable mixture contains the characteristics of an old social system and meanwhile, to introduce the new market system that accompanying characteristics of present economical, political and social systems and to focus on the issues during the transformational period (Minocha, et.al. 2009, pp. 20-35).

During the transition period, the issues were new the meaning of economic inequality and its causes. In this situation the newly acquired political freedom is possible, but the question remains same concerning the economic inequalities issues and the political deals. Economic reform brings many significant financial hardships or even poverty, which does helped in anyway but over these sensitive issues. On the other hand, privatization, restitution and private enterprise produce greater wealth, which disrupts earlier egalitarian climate and raises the question of legitimacy (Jankovic, et.al, 2011, pp. 45-52). Here they want to show the roots of the current situation and clarify the recent changes, with the resolution of various aspects of inequality, socio-economic and political problems. The first set of questions relates to the price liberalization and macroeconomic stabilization as a combination of egalitarianism and privileges. The second refers to the privatisation, which needs to be understood more broadly than simply as a homogeneous system replacing the unfair inequality and fair equality. The third relates to the social networks that need to be focused during transformational process and fourth is the banking sector. The serious problem was with new sources of wealth and poverty, and their acceptance and then compared to objective changes in economic inequality with how people perceive them. In conclusion, we will try to outline specific situation and problems of the Czech Republic in the context of post-communist countries.

Discussion

The Transition strategy

At the very beginning of the transformation, it was necessary to solve two basic questions: First, where the transformation would actually be facing and what kind of economy we want, and second, how fast you get to the goals.

The first problem clashed with two main concepts: one presented with the improvement of communists views, who believed in more central planning and government intervention. This group represented the most reformist communists; these are the men who believe in a series of utopian economic fairy tales.

One such utopian is the notion that the state is able to focus on "prospective" business sectors and then assigned to help them, such as tax breaks, subsidies, etc. This policy, of course, leads to corruption, cronyism, waste of ...