We experience this Trilema in India regularly.Example GST (General sales tax) one tax for all 29 states. At parliament it faces opposition, at many states this faces opposition as these democratically elected governments do not want to partake their present tax earnings as they do not want cut in their stupid welfare schemes. 29 states, thousands of regulatory discontinuities at the border is a thing to be experienced. Hopefully GST will be cleared shortly by the parliament. Agree with you "If we want more globalization, we must either give up some democracy or some national sovereignty. Pretending that we can have all three simultaneously leaves us in an unstable no-man's land."