The functioning of the world economy is determined by both markets and the policies of nation-states. The political purposes, rivalries, and cooperation of states interact to create the framework of political relations within which economic forces operate. States set the rules that individual entrepreneurs and multinational firms must follow. Yet, economic and technological forces shape the policies and interests of individual states and the political relations among states. The market is indeed a potent force in determination of economic and political affairs. For this reason, both political and economic analyses are required to understand the actual functioning and evolution of the global economy. A comprehensive analysis necessitates intellectual integration of both states and markets.