Economic activity is increasingly globalized as well. But today, that is far from the truth. Market economies are predominant throughout the world, having eclipsed centrally planned and controlled economies. The capital market is globalized. Trade and commerce move across national borders with few impediments.
Businesses think in terms of world markets and globalized production.
Mergers and acquisitions know no national boundaries. U.S. state governments have more trade promotion offices in other countries than does our federal government. I sit on the boards of three different companies and I can tell you first hand that all three spend much time and energy assessing strategies and actions to be globally competitive. Along with the globalization of information, technology, and economic activity, there is a mushrooming of new international actors in the form of non-governmental organizations and intergovernmental organizations and treaty agreements. The role of the nation-state is changing.