1. The transformation of human resources and non-human inputs into marketable products requires internal organization of economic activities. This remains true no matter how radically the forms of internal organization may change. Centrally organized traditional factories, disintegrated production and customer-oriented supply of goods and services based on modern logistics and communication technologies, or laboratories and networks dealing with the generation and distribution of information have in common that there is internal interaction of individuals as opposed to external transactions between economic subjects in markets. The most evident sign for this is the fact that firms and companies, not single individuals, are the important players in modern markets. In contrast to what some people seem to think, the role of internal organization is not disappearing but rather gaining importance. How else should one explain the many mergers or alliances observed in old as well as new economic sectors? And why else should it be reasonable for firms to expand their sphere of action by becoming a multinational or global enterprise?
KeywordsProduction Labor Skilled Labor Full Employment Unskilled Labor Wage Rigidity
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