As globalization of competition has intensified, some have begun to argue a diminished role for nations. Instead, internationalization and the removal of protection and other distortions to competition arguably make nations, if anything, more important. National differences in character and culture, far from being threatened by global competition, prove integral to success in it.

Efforts at European unification are raising questions about whether the influence of nations on competition will diminish. Instead, freer trade will arguably make them more important While the effective locus of competitive advantage may sometimes encompass regions that cross national borders. . .Europe is unlikely to become a ‘nation’ from a competitive perspective. National differences in demand, factor creation, and other determinants will persist, and rivalry within nations will remain vital.

Nations can reconcile social purpose with individual aspirations and initiatives and enhance performance by their collective synergy. The whole is more than the sum of the parts. Citizens of a nation will respond better to state encouragement and initiatives; conversely, the state will know better what to do and how, in accord with active social forces. Nations can compete.