The free market will continue to function the same as it always has, thats the great thing about a free market structure. It will adapt to any situation, regardless of whether or not there is an increase in automation, this principle has been demonstrated before, beginning with the first industrial revolution and continuing today. There always has and always will be faction in the world, unity will never exist on a world wide scale, this is simply human nature. I cannot see a single example of a united world that was not by force. Rome was united only by brute force, the British empire, every "democratic" country on earth today continues to exist because it's citizens live in fear of the power they have chosen to hand to their government. It's a sad truth but no cooperative society will ever exist with humans in charge. While you make many excellent points about a system that I to agreed is totally broken, your view of humans ability to unite as one is far from realistic. I cannot present you a solution and it's doubtful that anyone can present a solution that will fix the problems created by theological states. Once you institute a solution it will only create different, potentially worse problems.This is because the free market as it currently functions cannot work in a world of increasing automation, which makes labour far less important to economic growth.
the nation-state is not a structure that makes any sense in 2014.