Globalization of the Economy

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Economic globalization has voluminous positive influences on international security as well. The most important effect of economic globalization is that it curbs the authority of state. It also reduces states’ dependence on military based security and ultimately reduces states’ monopoly on security. This effect is considered by many, a prime factor contributing towards peace and stability. There are number of factors associated with economic globalization which affects states authority.
Firstly, present economic globalization has opened the door of opportunities for most of the countries. Though developed countries are making most profit from this opportunity but developing and even least developing countries are also exploiting the mutual benefit. Due to open competition local productions in less developed and developing countries are achieving better performance and standard. Economic globalization is also creating employment opportunities in those countries. On the other hand states are losing their monopoly on tax collection due to mismatch of economic and political jurisdiction, and internet-based trade. Thus, on one hand economy has become priority for states, and on the other hand states losing part of its control on economy. Therefore, economic globalization is exerting its authority on political and state power.
Secondly, with economic globalization there is an immense increase of the number of MNCs and their power in influencing politics. These MNCs, as
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