The political consequences of globalization can be broadly categorized into three different categories which are explained below:

a. Globalization leads to an increase in the state's capacity or the ability of the government to do what they do. The old welfare state is not giving away to a more minimalist state that performs core functions like the maintenance of law and order and security of its citizens. The old welfare functions directed at economic and social wellbeing are withdrawn. The government has been replaced with the market. The market is an important determinant of economic and social priorities. With the entry of multinational companies that have been a reduction in the capacity of the government to take their own decisions.

b. At the same time, globalization does not always reduce the state's capacity. It continues to be the unchallenged basis of the political community. The rivalries and jealousy between the countries have not ceased in world politics. The state continues to discharge its essential functions and consciously withdraw from other domains but has remained important.

c. In some respects, the capacity of the state has increased. One such example is the availability of better forms of technology which has help the government to collect information about the citizens. This has helped the government to make better decisions and rule in a much better manner.