Introduction Globalization, in the contemporary era, is often regarded as revolutionary to political, social and economic structures globally. It has caused a “power shift” from the traditional nation-states to global institutions, a trend, which, according to some researchers, has created “virtual states” (Rosecrance, 1996). Nation-states are slowly losing their political power to supranational organizations, regional non-governmental organizations (NGOs), devolved units and multinational companies. In this regard, globalization shifts political authority to different international institutions causing state institutions to converge under uniform international policies. Despite the power shift, political devolution can enhance the democratization process by facilitating the convergence of governance institutions. Critics of globalization urge national governments not to relinquish governance functions such as immigration, national security and criminal justice to supranational agencies (O’Brien et al., 2000). They argue that if nation states lose these crucial governance functions, they become ineffectual and unpopular among its publics. Also, the power shift or deregulation enhances the power of non-governmental actors in public intervention areas, including environmental issues and humanitarian aid. In major cities, such as Washington D.C. and Seattle, emerging political movements oppose the deregulation of international market and instead agitate for the protection of the local market (O’Brien et al., 2000). To understand the effects of globalization, this paper defines globalization, surveys its range and dimensions, and analyzes its pros and cons in the contemporary world. Definition of Globalization Keohane and Nye (2000) define globalization as “the expansive networks that span intercontinental distances (p. 105). Thus, globalization covers many aspects of global politics, from the diminishing political power of nation-states (political globalization) to the homogenization of culture, trade policies, consumption and living standards (economic globalization). Analysts attribute these changes to the elaborate transportation and communication networks. In this view, globalization encompasses linkages that lead to political and economic interdependence globally. One important element of globalization is global economic integration. Economic integration, though not yet complete, has led to reduced trade barriers among nations, increased labor mobility and led to a more interconnected global economy. It is on this basis that Friedman (1999) defines globalization as “the inexorable integration of markets, technologies and nation-states, enabling corporations, people and nation-states to reach the rest of the world” (p. 7). Friedman implies that globalization, though largely economic, also has a political dimension. It is the political decisions of nation-states to remove trade barriers in order to promote international trade and facilitate transportation and communication, which leads to globalization. Therefore, to understand the pros and cons of economic globalization in the U.S., understanding the role of political governance is important, as the two are intertwined. Political