Varieties of capitalism is the latest model for comprehending the organizational similarities and distinctions noted in the advanced economies because national political economies may be contrasted by referring to various means through which organizations determine how to coordinate various challenges they face (Hall and Soskice 7). In this respect, there are multiple actors, which seek to promote their own interests in a coherent manner as they pursue strategic interactions with other actors. Two distinctive forms of capitalism have been identified, namely liberal market economies (LMEs) and coordinated market economies (CMEs). Specifically, the LME is mainly made up of countries such as the US, the UK, Ireland, Australia and New Zealand while CME consists of Austria, Germany, Sweden and Japan. One can note the differences between CME and LME mainly through various ways in which they interact with each other and other stakeholders, including employees and trade unions among others. In addition, these actors could be individuals, companies, suppliers or governments. While several actors exist, the firm-centered political economy only recognizes firms as the most vital players in a capitalist economic system. Firms are regarded as the major agents of change in the era of technological advancement or international competition. As such, firms’ aggregate activities contribute to notable economic performance. LMEs rely on hierarchies to run their affairs and market dynamics. Thus, there are several elements of non-market interactions during coordination of diverse relationships among stakeholders. Five areas of interactions have been identified. First, firms must coordinate different activities that involve industrial relations. For instance, they must engage workers’ unions over labor disputes and employee productivity. LMEs tend to manage issues at the company levels because employees are not highly organized while CMEs prefer highly organized membership with bargain power that could occur at the national levels. Second, employee skills and training differ between CMEs and LMEs, for instance, the latter display more general skills applicable across the industries while the first depicts specific skills required within an industry. Third, corporate governance also is defined based on capital relations. CMEs, for instance, prefer less transparent capital with short-term earnings, not based on publicly available information or returns. It is referred to as ‘patient capital’ for retaining skilled employees and focusing on long-term returns. Conversely, LMEs promote open financial system in which short-term capital is preferred. Much emphasis is placed on market conditions, share prices and earnings on equity market. Laws and regulations encourage merger and acquisition. Generally, insider information could be difficult to obtain and, therefore, only publicly available information and balance sheets act as core sources of information. The mode of takeover, including hostile one and access to information are critical distinguishing factors in corporate governance of LMEs and CMEs. It is important to recognize that corporate governance is subjected to change as