In this groundbreaking report, Columbia University professor Mark Gordon grapples with one of the most important questions facing American democracy: What exactly is globalization and how is it affecting the ability of Americans to govern themselves through traditional civic processes? By focusing on the States and federalism, Professor Gordon looks at the area where our democratic processes are now most in flux as a result of globalization. He unravels the many different dimensions of globalization and addresses the varied ways in which they impact on a wide range of State-level policy decisions -- from environmental regulations to community development to tax policy. Professor Gordon's analysis is both nuanced and provocative. He demonstrates that globalization offers both opportunities and challenges for the States. New global interconnections have the potential to strengthen our democratic processes and expand our economic prosperity. At the same time, Professor Gordon paints an alarming picture of how international institutions such as the World Trade Organization could potentially strip democratic powers away from the States and U.S. citizens, ceding these powers to non-elected administrative bodies.