Globalization and Nation States
Globalization has integrated and intertwined the economies of the world. In the world today, every nation has become independent on every other nation, be it through trade or through finance. Developing countries today are attracting large rounds of foreign investment, and this foreign investment is coming from the developed countries. Thus, the money of the developed countries is today invested in the developing countries.
At the same time, the world has also become interdependent due to trade relations. Major countries in the world trade with each other so as to ensure maximum productivity. Trade laws have been established through international organizations dictating the extent of trade relations. Imports…show more content… The European Union is a strong force to reckon with, mainly because of the vast amount of resources it controls. The EU has put in place institutions and policy-making powers to react to or shape economic conditions on the continent. The adoption of the euro and the monetary union further impart strength to this international alliance of powerful countries.
Many scholars have suggested parallels between the EU and other international organizations like the UN. They claim that these organizations will make the world converge into a state much like the European Union. The IMF, the World Bank, the WTO, and the Anglo- American elite are being speculated as the prime makers of this new alliance.
However, the EU comes with its set of compromises and consensus seeking behavior. Thus, there is a possibility that in the event of globalization hindering development, the EU alliance will fall. The EU functions on an optimization principle which assesses the costs and benefits of…show more content… The nations still are collectively powerful, in that they can use the institution as well as legislative powers to regulate the economic and fiscal situation of the world today. The capacity of individual nations and their powers over the economic and fiscal decisions of their own country, however, has reduced a great deal. Economic policies are now subject to examination by currency and bond traders, trade partners, large corporations, banks, and private investors. It has now become increasingly difficult to make string ling term economic policies which will serve the interest of the country over extended periods of