Impact Of Globalization On Nation States

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The phrase ‘nation state’ is often referred to as two quite separate terms. ‘State’ is known as an individual political community which has its own rules and regulations which makes them separate from other communities. A ‘nation’ is primarily known as a large body of people united by common descent, history, culture, or language, living in a particular state or area. Globalisation is the trend of money and businesses to grow past their own national market and reach other nation-state markets around the world. This ultimately connects nation-states and their markets to one another. There are said to be four related dimensions of globalisation in which all can have an impact on nation-states: economic, political, cultural, and technological. These four dimensions provide evidence that globalisation has had a significant impact on nation states. One impact that globalisation has on nation-states is on the economy. Globalisation effects the economy by the vast flow of capital into the nation-states, allowing certain states to become interdependent on specific goods. If this capital is to run out or become unavailable, then it will have an instant impact on the states using it, thus creating an economic crisis. The nation-states of today have a lot more trade now which can result in our economies becoming more interconnected. An example of this is the ‘subprime’ mortgage crisis in the USA. This was triggered by a great drop in home prices, which lead to mortgage misbehaviours
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