The state has a great role in the growth of economies. Mostly, it is known to everyone that state plays a crucial role when it comes to economic decisions. Although a free market encourages economic growth without the intervention of the government still modern economies are highly impacted by government intervention for international relations and security. The policymaking structures of the government work under a crucial influence of economic activity. Economy and state are interconnected because both rely on each other for economic growth. Even the organization that works for economic growth can stably function along with the close collaboration of the state.
The evolution of state systems impacted the world economies with a huge influence. The establishment of government changed the overall economic system. Today, the government plays a huge role in the establishment of international economic relations. The global economy is because of the policies that meet the challenges of a globalized economy. It is important for the economy to work effectively both at national and international level. The government provides a mechanism through which it can make the domestic and foreign industries to work properly for the growth of the economy. The government also provides security to both domestic and foreign businesses which play a huge role in the matter of gross domestic product.