| Globalization is an important economic and political phenomenon that has become one of the most intensely debated topics in political science. Globalization, broadly defined, refers to the increasing level of human interaction across both national borders and the world, which results in a plethora of new economic, political, technological, intellectual, and cultural developments. Globalization is most commonly conceived in terms of its economic component, such as the reduction of barriers to trade and the proliferation of free trade areas, which enables transnational capital to move both across and within domestic markets. The economic and political ramifications of globalization have led some commentators to advocate the convergence of the market and the state. This thesis demonstrates, however, that in practice, the convergence of the market and the state is illusionary. Despite some erosion to the overall power of the state by the actions of transnational capital, the state is still very much an important actor in the international economy. The state has the capacity to either participate in the international economy or to impose trade barriers. Moreover, the state is a flexible institution that has the ability to control transnational capital for the benefit of its citizens. |
