The process of globalization involves the transnationalization of production and capital, which gives rise to global trade. This transformation from international to transnational capital signifies an “”epochal shift”” in the world economy that has a fundamental impact upon the nation-state. The paper discusses the role that the state plays in advancing globalization and how that role has metamorphosed since the previous epoch of the world economy, which was primarily characterized by the dominance of the multinational corporation. An examination of public policy reveals the power relations and dominant groups in society as well as the manner in which public policy has been globalized by the state. Hawaii is selected as a case-study to demonstrate this hypothesis. Hawaii’s case is noteworthy since it is part of the United States, yet exhibits some of the characteristics of a developing country due to its location in the Pacific basin. This dual identity indicates the complicated nature of public policy as the state machinery tries to compete to secure a solid beachhead for Hawaii within the global economy. But the state’s actions have a price: the alienation of large sectors of society, which have been harmed by this transformation and which demand decision-making powers in devising public policy. This expression of globalization in the social arena and its implications for political power are central points in the study of these global/transnational processes.