"Globalization is commonly described as the processes and forces leading to an ever-decreasing capacity of the nation state to govern within its territorial boundaries" (Levi-Farr & Vigoda-Gadot, 2004). Even though world trade is larger than ever before, national living standards vary according culture, the wealth of the state (nation), and domestic factors. The study of globalization requires a holistic approach and must be analyzed from all angles.

According to Strange (1996), although nation-states once controlled the markets, it is now the markets that often control the nation-state (Levi-Farr & Vigoda-Gadot, 2004). Examine the major factors that account for the unequal distribution of globalization effects in different states. Suggest how policy entrepreneurs, policy makers, and policy administrators should redesign states so that people can benefit from globalization in general. Provide a rationale for your response.

Analyze the key driving forces to increase interdependence. Recommend two (2) actions that states can take in order to increase capacity to respond to the challenges of globalization. Justify your response.