complexity of the process. The essay argues that since the foundation of the EU, themember states have been encouraging globalisation , and have increased thisevermore so in recent years with legislation which almost abolishes state bordersallowing the free movement of labour and also by replacing many countries signaturecurrencies with the Euro. The power of the European Central Bank and in particular the introduction of the Euro are significant factors in the ever increasing integrationof the EU. The Euro facilitates freer trade between countries and is a significantlandmark in the formation of a global community. Also in recent years European anti-terrorism laws that have been introduced have been the same across all of Europeshowing a reduction in independence of national governments and more of a drivetowards interdependence and cooperation on a large international scale. Other goodexamples of this international cooperation are the UN, NATO, the war on Iraq andcommon agricultural and fisheries policies implemented in the EU.Despite this obvious reduction in the nation-states power as an autonomous decisionmaking machine and as an economic stand-alone, the nation-state still holds a largeamount of power. Thomas Friedman gave a fantastic explanation of the input that thenation-state has in today’s business world, ‘
The hidden hand of the market will never work without a hidden fist. McDonalds cannot flourish without McDonnell Douglasthe designer of the F-15. And the hidden fist that keeps the world safe for SiliconValley’s technologies is called the US army, Air Force, Navy and Marine Corps.
’(Friedman, Thomas 1999). He points out that the nation-state clearly provides thesecurity needed for the big businesses to flourish and voluntarily allows thecorporations to have such a dominant position in society as it is good for the economyto allow these money making machines a certain degree of freedom. "
"is a concept put forward in Thomas Friedman’s 1999 book ‘
The Lexus and the olivetree’
in which he recognises the need for local areas to maintain their unique cultureswhile at the same time he remains a staunch advocate of globalisation. In other wordshe stresses the importance of the local and the global. This essay argues therefore thatwhile nation-states are making concessions to the onslaught of globalisation they arestill playing an important role in the global economy as creators of economic policies