STATE, ECONOMIC POLICY AND GLOBALIZATION

The aim of this paper is to show how globalization is affecting the state and its economic policy. Economic policy is understood as the approach of the state to the economy of their own country. Depending on the extent a state is involved in the economy and the extensiveness of its interventions, we can talk about liberal or interventionist economic policy. However, the state cannot implement economic policies only according to their political beliefs or even arbitrarily; there are many factors that limit the state's economic activities. These are the elements of the institutional environment, corruption, lobbying and globalization. This paper discusses the relations between globalization, the nation state and its economic policies. The first part briefly describes globalization and its basic characteristics. The second part of the paper describes the relationship between the state and globalization. The final part of the paper deals with the influence of globalization on economic policy. Conclusions of research has shown, that globalization has reduced the position state in the economy and weakens its economic policy.