Sovereignty is the quality of having power, an independent control over a certain geographical area such as a territory CITATION Chr02 \l 1033. Sovereignty gives a territory a power to rules itself and makes laws on its own through an established government. This concept tries to enhance independence of every state or territory. The independence mentioned above is currently affected by the globalization which is killing the territories through the integration of regional economies, cultures and societies. The regional economies, cultures and societies are being integrated by means of trade, transportation and communication. The benchmark achievement of globalization can be said to be the establishment of the world trade organization (WTO). Thus the impacts of globalization can be viewed in this angle. The WTO agreements and other international agreements have imposed substantive restrictions on the sovereignty, including the power to legislate and to tax. This is, however, by itself an exercise of the sovereign power of the national concerned.
Globalization effects began to intensify in the 1970s and 1980s when the liberalization of capital flows and deregulation of financial markets steadily eroded the scope for national monetary and fiscal policies CITATION Ram03 \l 1033. This is when economic globalization can be said to have started. Economic globalization can be described as the integration of nation and regional markets. This integration involves the exchange of goods, capital, services and labor without government limitations. An immediate effect of economic globalization is the integration of the national markets that were traditionally separated by the boundaries of sovereign states into a world market, which in turn reduces the differences in economic systems of the members of the international community CITATION Kat03 \l 1033. This allowed a territory to carry out its financial businesses easily without wondering which currency to use as policies had already being made concerning currency exchange. Through the currency policies developed in this period, individuals and countries were allowed to carry out their businesses without any barrier.
The basis of economic globalization is that most members of the international community have adopted the market economic system. This is usually referred to as the first generation reform. After completion of this reform, the task of second generation reform is the establishment of legal norms and framework suitable for bringing out fully the potentialities of the market both at the international and national level CITATION Ram03 \l 1033. By the end of 1980s a new phase of interdependence had begun, led by a marked increase in foreign direct investment primarily in capital and technology intensive sectors and services. As international rivalry intensifies, growing firms have changed their ways of production through the use new information and communication technologies (ICTs) to improve their efficiency. Through the use of information and communication technologies firms and industries are able to market their production globally. The result of this transformation is that the multinational enterprise is today the main funnel for the three engines of growth which include capital, trade and technology. The full impact of the ICT to the economic globalization is clearly visible through the growth of the electronic commerce. Through the cyberspace borders are eliminated and this creates a single global market. We may not feel the effects directly but national sovereignty is eroded by economic and technological forces.
Through economic integration both at international and national levels, consumers will be able to purchase products at the prices they fill convenient with from anywhere in the world. This will eliminate barriers and impediments to trade and investment. It also increase growth and create new jobs as global competition has forced industries and firms to restructure and innovate their operations so as to meet the global needs. For most of the developing countries, their main benefit of globalization is the spread of the new technologies. The new technologies have helped their production to grow and thus raising their living standards. No one chose globalization and neither can we avoid it, the only thing we can do is to choose the measures, economic and legal for meeting the needs of our countries.
|Stand Alone Project||Financial Crisis on Mortgage Lendind and Residential Housing; UK and Sweden|
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