Globalization Vs Nation-State

2006 Words 9 Pages
Word Count: 2,117

Globalization is the process of increasing the interconnectedness of the world, creating an ever-shrinking global community. Innovative technologies allow people to communicate and materials to be transported at never-before-seen speeds, with ever-decreasing costs. Hence, globalization naturally limits state 's power; it reduces state revenues, while consolidating political power in international institutions. Such institutions stand as more capable and comprehensive political organizations; creating international norms. However, nation-states are the key players in the two-level game of balancing domestic and international pressures, they are best positioned to represent domestic views on the international stage. States, unlike international institutions, have the inarguable and legitimate capacity to enact comprehensive, binding rules upon their members. Does globalization diminish the role and power of the modern nation-state, favouring instead international institutions as the future political unit? Though globalization presents many challenges to the nation-state, it will not remove or lessen the role of the nation-state,
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Corporate taxes are not the principle source of nation-state revenue as Wade noted when reviewing the impacts of reducing corporate tax on government revenue: "taxes on labour income and spending are the predominant source of national revenue, the modern country 's income base seems quite safe."(Wade, 1996). The global supply chain reduces corporate taxes, but in exchange provides jobs and increases disposable income, which more than offset the revenue lost from reducing corporate taxes. The increased revenue from jobs creation and taxes on purchases made with disposable income allow governments to provide and maintain social

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