What is meant by globalization? To what extent has the authority of nation-states been eroded by globalization?
With the turn of the 21st century, most nation states around the world accelerated their rate of opening their economies to global trade. With such a proactive approach, these domestic economies hope to not only develop their GDP but also create new market opportunities. By integrating their national economy into the global market they also look towards expanding trade, and political alliances (.
However, to join the international franchise of trade comes at a hefty price. The perception of this can be viewed as a weakening of the nations economic sovereignty particularly the degradation of fixed and exclusive rights over its economic activities, wealth, and natural resources. This is quite common when seeking membership to the United Nations, European Union and other supranational bodies. World history will show that such economic sovereignty of an individual member is occasionally influenced by global economic trends (Steger, 2003).
Its this increase in the number, and power of such organizations that have limited countrys sovereignty to a certain extent. A leading example of this is highlighted by the three leading financial institutions, the World Bank, the International Monetary Fund, and the World Trade Organization, in domestic economic affairs of their members. With over 50,000 TNCs having developed during the last century many of which are now sharing, or crossing the threshold into individual country sovereignty in the economic arena. For developing nations, due to poor economic conduct many have succumbed to foreign assistance and intervention, foregoing a degree of government and economic autonomy (Croucher, 2004).
For this reason, many have identified such loss of economic sovereignty under the term of globalization as a new form of neo-colonialism (Wolf, 2004). Furthermore, a number of the worlds financial superpowers; the United States, Japan and the European Union have taken advantage of their dominant positions and through...