ABSTRACT
In contrast to the new orthodoxy, I argue that the novelty, magnitude and patterning of change in the world economy are insufficient to support (he idea of a 'transnational' tendency: that is to say, (he creation of genuinely global markets in which locational and institutionaland therefore national--constraints no longer matter, The changes are consistent, however, with a highly 'internationalized' economy in which economic integration is being advanced not only by corporations but also by national governments. Proponents of globalization overstate the extent and 'novelty' value of transnational movements; they also seriously underrate the variety and adaptability of state capacities, which build on historically framed national institutions. My argument therefore seeks not simply to highlight the empiricallimits and counter-tendencies to global integration. More importantly, it seeks to elucidate theoretically what most of the literature has hitherto ignored: the adaptability of states, their differential capacity, and the enhanced importance of state power in the new international environment.
