The current debate on how globalization is restructuring the nation-state and the international system involves a series of highly complex issues and has yielded few widely accepted conclusions. However, one near consensus standing out from the recent literature is that world system theory, which divided the world into ‘core’, ‘semi-periphery’ and ‘periphery’, no longer reflects reality. For example, Hoogvelt (1997) argues that the basic architecture of global society is no longer based on the nation-state. Social differentiation takes place across national borders, and there is now the ‘First World’ in the ‘Third World’ and the ‘Third World’ in the ‘First World’. Ong (1993) argues that the world capitalist system is now ‘polycentric’, with multiple nodes of power. Similarly, pointing to the mutual penetration between newly industrialized economies (NIEs) and the traditional core economies through investment and trade, Dicken (1998) describes the world economy as a ‘multi-polar’ system without a clear core-periphery division.