What exactly do you mean when you say "government?" There are many structures within society whereby we govern ourselves and form mutual agreements with others. When I specifically use the word "government," I mean a group of people who claim a territorial monopoly in violence. This usurped power can only draw the corrupt and corrupt those who intend virtue. Corruption isn't a bug, it's a feature.

The megacorporations people use as bogeymen of capitalism exist because they are intertwined with government. Incorporation is a legal process for protection in government courts. They lobby government for subsidies, protectionist regulations, bailouts, sweetheart contracts, and ever other anti-market intervention people say stems from free markets.

It does not follow that trade necessitates governments. It's also historically inaccurate. Merchants developed their own codes and courts because national laws don't work for free trade. They obstruct and interfere and turn innocent people into criminals. However, governments usurped many of these mechanisms in order to legitimize their interventionist policies and enrich their cronies while proclaiming they were somehow protecting us in the process.

Nationalism is isolationist. markets are global. It is the web of market prices and exchanges which made possible the automotive industry, computers, trade, and the rest of the modern world you credit government in your correlation/causation error. Strong government mean bad laws and worse wars. Police states and prohibition are anti-market, anti-individual, and anti-liberty. Arbitrary government borders are an obstacle to peace, progress, and prosperity.