The Global System and the State
Globalization is a historical economic process that is creating a global system, an economic and political system whose central institutions, besides the classic nation-states, are the UN and the legal system built around it. While in the balance of powers diplomacy, which existed following the formation of the modern state and particularly following the Westphalia treaties, major nation-states disputed territories and viewed each other as enemies to be threatened with wars, in the new global system countries are economic adversaries competing in world markets. Globalization is the generalized competition for world markets among business enterprises, supported by their respective nation-states. Thus, although nation-states became more interdependent, they also became more strategic.
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