This allowed it to use taxation to redistribute some of its wealth. Today, faced with threats of corporate exodus and brain drain, its room to manoeuvre has decreased. Consequently, savings are made at the expense of social programs in the name of competitiveness, and taxes are reduced. The result is widening disparity between, and within, countries. Like their biological equivalents, computer viruses spread throughout the world mocking national borders.
Financial crises create a domino effect around the planet.
The world environment is blind to legal sovereignty. Added to this geographical interdependence is a sector-based interdependence in which economic decisions have social repercussions, political actions have cultural ramifications, technological innovations have environmental impacts, etc. The State is supposed to protect the consumer, but the means to do so in globalized sectors of the economy are few and far between. Nevertheless, the State is blamed. Maintaining States based on the rule of law Finally, and above all, people count on the State to maintain and preserve the rule of law without which markets can not operate effectively.