To What Extent Can National Governments Influence the Outcomes of Economic Globalization? Discuss with Examples?

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To what extent can national governments influence the outcomes of economic globalization? Discuss with examples?

In a world where trade barriers are blurring, people cross borders relatively easier in comparison with previous times, countries cooperate with one another and even unite and multinational enterprises (MNEs) gather momentum the national governments still exist. National states refer to geographical space preoccupied by a group of people, who share the same cultural values and political governance, language and religion, history and ethics (Dicken, 2003). Recently, their relevance has been questioned because the world experiences fundamental economic transformation (YouTube, 2008). In other words due to globalization a
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II.2. Industry policies Industry policies refer to the internal policies performed by a national states, however, they appear to be relevant to the international level of business systems, as well (Dicken, 2003). Table 1.2 below represents the two major groups of such policies: Figure 1.2 (Dicken, 2003) As a consequence of economic globalization, industry policies tend to modify. For example, nowadays there is a tendency towards privatization and deregulation. Therefore, the role of national governments has been neglected to a certain extent, because companies become private and markets deregulated. II.3 FDI policies There are four major classification policies towards inward investment (Dicken, 2003). The first one is based on barriers of entry:

Figure 1.3 (Dicken, 2003; Dunning and Lundan, 2008) The second group of policies refers to the actions that foreign companies undertake (Dicken, 2003). Some of the requirements might aim at involving local resources or labour force in the firm’s activities; others might claim certain levels of exports or policies towards the transfer of technology (Dicken, 2003). The third category is based on minimum outflow of capital and higher taxation towards FDI companies. Last, but not least important a number of countries stimulates the inward investment, because FDI might be
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