The occurrence of globalization in the universe is a topic no person can hide from. Due to modern technology in transport and communication, contacts between people in different parts of the world have become much easier. Trading is now a world wide aspect of life. As technology makes it easier for interaction between far off countries, the politics and economy of these countries are subject to more and more influences from exterior boundaries.

This aspect of globalization almost appears to dwindle traditional power and sovereignty of states. This is why the topic of position and control of nation-states in the face of globalization is widely discussed. Many authors argue that globalizing forces will eventually lead to the destruction of the nation-state system in international politics. This type of argument is shown in title "The Retreat of the State" (Susan Strange, 1996). Many who refuse this argument contend that nation-states will hold their traditional powers and sovereignty.

The purpose of this essay is to discuss the challenges globalization causes towards nation-states. In doing so, this essay will present different views on the subjects and explain why global

Another possible view to take towards a nation-state is that the states are maturing rather then losing their sense of identity. While certain state functions may grow or recede in importance, the institution itself is in healthy shape.

Equally, the notion that companies should wish to be transnational in the sense of extra-territorial is also a strange one. Most firms are embedded in a distinct national culture of business that provides them with intangible but very real advantages. Companies benefit not just from national business cultures, but also from nation states and national communities as social organizations. Hirst and Thomson cite the case of US firms that they have very real benefits in remaining distinctly American that stem from the power and functions of national states. It should not be forgotten that markets and companies cannot exist without a public power to protect them (Paul Hirst and Grahame Thompson 1996).

This aspect is well illustrated by some surveys on the case of United Nations. All members of the United Nations are automatically parties to the Statutes of the International Court of Justice but need not accept the Court's Jurisdiction (Susan Strange 1996). A survey calculates that only around a third of UN members accept its jurisdiction (Susan Strange 1996). Transnational legal bodies generally lack the ultimate capacity military or otherwise to force unmanageable nations to accept the outcome of judicial process. This means that nations choose to regulate themselves rather than being coerced to change direction.

Every trend in human history has its ups and downs, which is most likely the same even with the globalization. What is important may be whether it still has its momentum despite the ups and downs of specific times.

Within the global capital market, gamblers and investors have the ability to exchange large sums of money from one country to another with just a few clicks through the electronic communication network. It is impossible for a state to have complete control over movements which can be made instantaneously. The effects of this can clearly be seen through financial crisis of some Asian countries, the disappearance or speed of dispersing gambling money has motivated some financial turmoil (Elenore Kafman and Gillian Youngs). The effect on sovereignty can also be recognized through the development of offshore bank deposits. This causes states to lose ownership of a major national identity, currency.

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Approximate Word count = 1996
Approximate Pages = 8 (250 words per page double spaced)