Therefore, it can be said that how people perceive the world will influence political decisions they make. .
This concept can be clearly illustrated by an example of globalisation (Hay, 2002). The process of international integration is one of the essential elements to affect policy-making and social decisions nowadays, so let's consider the level of company taxes across the countries. States have two premises to start with, one of which is to believe that the world is more open to capital flow between countries, hence, cutting the tax will attract higher levels of foreign investment, which, in turn, will increase a country's net tax revenue. The alternative would be not to believe the globalisation concept and keep the tax relatively high, so that the net revenue is maximised through collecting greater volumes of the tax from the incumbent firms, who will have no choice but to pay it, as they cannot move the production to another country. Consequently, there are only four possible outcomes for the government making the decision. If the first premise, that globalisation has taken place, holds and the government decides to lower the corporate tax, it will likely to see an increase in the fiscal revenue as more countries will be willing to move their factories to the country with lower rates of the tax. Otherwise, if the tax level is kept high, there will be a decrease in the income due to domestic firms leaving the country to find more taxation friendly environments. If, however, the second premise, that globalisation does not exist, is true, the government could either opt for increasing the tax, which will lead to a rise in the net revenue or keep it low and loose out on potential earnings. Therefore, the key point to draw from this example is that the politicians will make their decisions according to their own beliefs about the current situation. Indeed, Hay (2002, p. 204) states that " it is ideas about globalisation (constructions) rather than globalisation per se which affects political and economic outcomes ".