What is a key concept of the Globalisation Trilemma?

The Globalisation Trilemma is best captured by the concept of maintaining two out of three factors: hyper-globalisation, national sovereignty, and democratic politics. This idea posits that it is challenging for a nation to fully achieve all three at once due to inherent trade-offs.

For instance, if a country prioritizes hyper-globalisation—embracing free trade and unrestricted capital flows—it may need to compromise on its national sovereignty, as global economic integration can lead to external influences on domestic policies. Similarly, favoring national sovereignty and democratic politics might limit the extent to which a country can engage in hyper-globalisation. This balance illustrates the complexity and interdependence of these three aspects in the realm of global business and governance.

In this context, the other options do not encapsulate the essence of the Trilemma as effectively. Focusing exclusively on hyper-globalization or national sovereignty ignores the necessary interplay and potential conflicts among the three components. Promoting democratic politics as a standalone goal within globalization efforts overlooks the need for trade-offs, which are central to understanding the Trilemma. Thus, grasping the nature of these choices informs the fundamental dynamics nations face in a globalized world, which is why maintaining two out of three factors is a pivotal