Globalization and the State. Discuss Essay Example | Topics and Well Written Essays - 1750 words

Globalization and the State. Discuss - Essay Example Companies which grew their subsidiaries in different countries and continents found themselves in a unique situation of transcending those states where they had a presence. As globalisation become more prevalent, states find themselves unable to enforce sovereign power that is supposed to be absolute, supreme and unlimited; instead, in the name of economic progress, states have learnt to negotiate, compromise, and in some extreme cases, capitulate before the large MNCs. Globalisation challenges the traditional link between constitutionalism and the state, and elevates constitutionalism to a transnational context (Anderson 2012). The purpose of this brief discussion is to cursorily explore the various issues posed by globalisation and how in response to them the nation-state has evolved, as embodied in the academic literature existing to date. The topic will cover the political, economic and legal implications of globalisation upon the state, and how the concept of statehood is being reinvented and redefined to adjust to the recent phenomenon of modern globalisation. Dimensions of Globalisation Ewoh, Matei and Matei (2013) distinguished among three dimensions of globalisation: economic, political and social globalisation. ... Of particular interest in the investigation was the link between corruption and globalisation. In this empirical study, a direct correlation was found to exist between political globalisation, stability and impact of the anti-corruption strategies put to effect in states. The most powerful influences on political globalisation are related primarily to political stability, and secondarily to anti-corruption strategies. These findings indicate that the greater the degree of political globalisation of the state, the less likely it is subject to corruption. Globalisation and the Perfect Market Globalisation requires deregulation, but deregulation of the markets is premised on the condition that perfect market opportunities are present – this means complete transparency, complete information available to all players, transaction costs are zero, and the market is therefore efficient. It is well known, however, that markets are in reality inefficient, so deregulating the markets will be done without the assurance of free market conditions. The study by Prentis (2012) proved empirically that deregulating stock markets (and it assumed any auction market), particularly as a measure leading to globalisation, can actually hinder rather than help in returning stability to the markets. The findings of this study relate political ideology of the state to the level of its globalisation. The implication of a national economy that participates more fully in globalisation is that it tends to be more competitive, with greater openness to the free market forces; conversely, the less globalised a nation’s economy is, the more likely it is to be a