Sub nations

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Recommended: Globalization and its effects on society

Introduction
Globalisation involves integration of global production, international trade and foreign direct investment that all interconnected each other. It is an inevitable process that enables people, capital, products, information and services to move easily across the world because of the further advancement in information, communication and transportation technology (Morrison, 2011).
Although it continues to integrate countries uninterruptedly in a different pace around the world, each location where TNCs operate internationally will have variances in histories, structure of economies, social, cultures, politics, educations, natural resources, geographic conditions and markets. It forces both nation-states and transnational corporations (TNCs) to compete intensely to get a high degree of competitiveness. Hence it allows them to acquire almost all the available resources through either its competitive and/or comparative advantages. The interconnectedness of globalization fosters important opportunities as well as policy challenges both for firms as well as for nations through the governments.
The role of government will be closely related with the types of economic system. Variety of capitalism will determine institutional structure of political economy, social structures, cultural values and national business systems. ‘Institutional structure of particular political economy provides firms with advantages for engaging in specific types of activities’ (Hall and Soskice 2001:37). Scholte (2010) underlined that social life will still exists over globalization that orchestrates regions, nations and also local or sub-nations specific to synergise. According to Bryson (2010),
‘National economy composed by many sub-national econ...

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...Princeton, N.J. ; Oxford: Princeton, N.J. ; Oxford : Princeton University Press.
22. Scholte, J. A. (2010) Governing a more global world. Corporate Governance: The International Journal of Effective Board Performance, 10 (4): 459-474.
23. Soskice, David W. (2001), Varieties of Capitalism: The Institutional Foundations of Comparative Advantage. [online]. Oxford Scholarship Online. Available from: 6 November 2013
24. Sun, S. (2008) Organizational Culture and its Themes, International Journal of Business and Management 3 (12): 140
25. Varieties of capitalism electronic resource] : the institutional foundations of comparative advantage / edited by Peter A. Hall and David Soskice. (2001) Oxford England] ; New York: Oxford England] ; New York : Oxford University Press.
26. The Global Competitiveness Index 2013–2014, World Economic Forum

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