Globalisation and the Nation-State

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With international market opportunities, huge competition for consumers, government initiatives and cost drivers all influencing companies to start operating over national state borders it is no surprise to see millions of companies operating globally in all sorts of different economic sectors. Emerging nations such as China and India have also allowed companies to reduce production costs and target wider developing consumers. With these opportunities and with many of the other opportunities surrounding globalisation economics now look at the economy on a global scale as opposed to a national scale which has led to conflicting perspectives on the use of the nation-state. As early as 1969 economics such as Charles Kindleberger sparked the perspective that “the nation state is just about through as an economic unit” (Kindleberger 1969: 207) The following essay will look at globalisation in terms of the economy and look at two of these businesses currently operating globally to see if the role of the individual nation-state government remains vital despite the trend towards globalisation. Firstly one must define what globalisation actually is and what type of organisations qualifies as a ‘global company’. Researchers suggest that globalisation is ‘one of the most misused and one of the most confused words around today’ (Dicken, 2007). Globalisation is a widely used term that has no simple definition; instead researchers suggest that the word has become a ‘convenient summary term’ used by many to ‘bundle together virtually all the goods and bads facing contemporary societies’ (Dicken, 2007). There is one definition that most globalists will agree upon and that’s that it is a “process by which the experience of everyday life, marked by the diffusion of commodities and ideas, is becoming standardized around the world.” In terms of the economic globalisation that essay will be concentrating on, “Globalisation is a level of economic activity that has outgrown national...
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