States Autonomy In The Era Of Globalization

Globalization can be defined as a process of cementing economic, cultural and political bonds across borders. Though with the advent of globalization, world transformed into a global village and states are enjoying integration but side by side globalization is also challenging the sovereignty of nation states.one of the major challenge is growing power of firms(MNC’s,IGO’s,NGO’s etc. ).Firms are putting a tremendous influence on economic growth and activities of states; especially developing states, who rely on MNC’S to integrate their economy in the world economy and developments. Despite of the fact that there are challenges to states autonomy in the era of globalization but state role is not completely undermined. States still have de jure

State’s governments no longer control the spread of ideas, trade,labour and ownership of economic resources. NC’s are under the control of particular state so they make their own independent policies and sometimes it may challenge the state’s sovereignty. They also have an increasingly multifaceted understanding of how take advantage of changing political circumstances in the international system as well as how to influence state policy in order to gain legitimacy. By gaining access to more markets corporations are able to take advantage of uncertainty in world events and enhance wealth acquirement. A change in costs shifts production from high costs states to low cost states, usually to the dismay of the latter. MNCs are then able to play states off of each other, forcing states to compete with each other in order to secure investment which brings jobs and tax revenue. This obviously gives MNCs noteworthy power as it allows MNCs to order to countries what they want, and if a country does not respond favorably a corporation can simply pull out and invest in the state with the next lowest opportunity cost. (Göksel**,