Explain what globalization is and how it affects the state

According to the text globalization is the integration of states through increasing contact, communication and trade to create a holistic, single global system in which the process of change increasingly binds people together in a common fate.

Propelled forward by increasingly new technological advances, globalization has made the world extremely small allowing people to communicate across time zones. Globalization has also brought about diminished national borders and the fusing of individual national markets, all of which have aided international growth and development.

The effects of globalization have had the most effect in four areas: finance, production, labor and trade. Globalization of finance is defined by the text as the increasing transnationalization of financial markets. Central to this idea of global finance is the concept of a consolidated financial system that is not centered on or in any one state. This "stateless" financial system has made governmental r...