Many observers have suggested that globalization inevitably undermines the power and sovereignty of nation-states. why?

State sovereignty is defined as the ability of a State to rule within its own territory. Globalization does undermine the power and sovereignty of nation-states. It has been seen as a threat to both culture and national identity in the sense that external forces are acting on it due to international capitalism. The increasing number of powerful multinational corporations and non-governmental organizations is one of the big reasons why state sovereignty has been diminished. Thus, the power holders are more likely to be big transnational companies rather than States.