One of the signposts of the political analysis of current world is globalization. It covers a huge variety of phenomena which includes all major aspects of social life. It is in number of ways that the world globalizes; some of which are technologically, economically, ecologically and politically. The flow of information and other information technology development could not be stopped by the national borders. A lot of this are impacted by globalization. The status of the nation-state in the global system is one of those things. In essence, globalization has resulted in ending the monopoly of the nation-state over its internal sovereignty which was guaranteed formerly by territory. Geographical distances are waning away in the era of globalization together with impediment of territorial boundaries (Barnett 1999). To a state the key attribute was its sovereignty. The challenge which is faced by the states today is that of losing parts of its sovereignty and its monopoly on international affairs which results in losing their capability of making sound political decisions. It was on the ability to control all vital spheres of the cross-border interactions that the domination of the state over the global relations rested upon. It is to a large degree that the scope of inner sovereignty has been narrowed legally because of international agreements which includes issues in connection with already formed traditions and models of state behavior and related to rights of humans.
There was a boom of non-state international actors due to the growing interdependence of the economy and the spill-over impacts produced by the same (Barnett 1999). In the international economy, the symbol of the new power centers are the transnational corporations. The operation of these entities is across the borders of state, wherein they don’t pursue the interest of the state which they formally belong to but pursue their own interests. As a basic international actor, the state finds itself surrounded by many competitors which are ready to offer alternative norms and rules for global politics. The states in the globalized world has to give up its right to impose specific policies due to the factor and the actor which contribute to globalization. In this regards, the role of Britton wood institutions and United Nations Organizations is very crucial (Craig and Dollar 2000). It is by removal of tariffs and trade barriers that the states often give up their economic sovereignty.