Furthermore, the ongoing globalization challenges the traditional model of the state but is not necessarily a threat to the nation state as such. States have proved to be surprisingly resilient and innovative in meeting a variety of challenges, for example financial constraints, powerful organized interests or even political protest and legitimacy crises. We should expect to see various forms of transnational cooperation become increasingly important as markets become global. The process of state reorganization as a response to changes in their external environments is about as old as the state itself and we cannot think of any reason why that process would not continue.