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Abstract
The purpose of this article is to find out if the five elements theory and traditional Yin Yang is able to apply to business research and account the complexity of business problems.
Keywords
Yin Yang, Wood, Business cycle, Business functions
Introduction
While the West views economic development and progress as a pattern of conflict, competition, resolution and synthesis, the Chinese and East Asian countries view is based on The Five Elements Theory (WU-SIN) and on the Yin and Yang approach of socio-economic balance and harmonization.
In traditional East Asian countries, a balance was maintained between Confucianism (Yang) and Taoism, Buddhism and other philosophies (Yin). In modern societies, the challenge is to balance traditional systems (Yang) and Western style capitalism (Yin). (Ho-Chul Lee&McNulty, WB 2003, p. 6).
Traditional Chinese Yin Yang approach and the Five Element Theory is widely known and broadly used mainly in medicine. Besides the area of medicine has this approach become popular also in other fields of interest like army, sociology, architecture and others. The objective of this paper attempts to offer several examples of how the traditional five element theory is applied to economic theory and research. This paper also brings some literature overview on this interesting topic.
Materials and Methods
Since the five elements theory and Yin Yang approach has its general implications beyond the traditional and natural medicine authors endeavour to apply its principles to some economic areas to demonstrate its ability to account for business realities. Besides using basic knowledge and aspects of Wu-Sin and Yin Yang authors use current literature.
Economics and Five Elements Theory
Figure below presents differences between the West and East Asian countries way of thinking in sociological and philosophical approach how to solve economic, political and social questions.
East Asian view is based on the Yin Yang theory's approach of balance. That means that the interactions of the opposing forces will bring progress and harmonization within the moral discipline. In case that balance by itself fails the government coordinates. The West interprets the forces to be conflict and derive from Hegelian1 philosophy. The harmonization will come through invisible hand in market respecting the legal codes. This is typical liberal approach of classic economists, who elevates and highlights the rational individual...