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There is intense debate regarding the impact that industrial relations exerts on macroeconomic performance. For example, some people say that the key to the success of the Japanese economy is the industrial relations system in that country. Describe three ways industrial relations might affect a country’s macroeconomic performance (GNP growth). Then suggest how you could empirically test one of the ways industrial relations exerts such effects. Finally, based on your own knowledge of comparative industrial relations, to what extent and how do you think industrial relations affects macroeconomic performance?

 

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