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TCW Module 2 Chapter 1 Part 2
TCW Module 2 Chapter 1 Part 2
CHAPTER 1 (Part 2)
MODULE 2
Globalization Theories
The age of economic globalization has also been the age of regionalization,
and much of the analysis of the new regionalism has been devoted to the links
between the two tendencies. Thus, regionalism is seen as critical part of the
political economy of globalization and the strategies that states have adopted in
the face of globalization . . . The emergence of regionalism needs to be
understood within the global restructuring of power and production. The many
worlds are very closely intertwined with the character and fate of the one. The
core driving force is global even if the manifestation is regional.
We can understand that globalization as “the increased flows of goods,
services, capita, people, and information across the borders”. Defining region
and regionalization is complicated. Nevertheless, region is “a group of countries
in the same geographically specified area”, regionalization as the “societal
integration and the often undirected process of social and economic interaction”
and regionalism which is “the formal process of intergovernmental collaboration
between two or more states”,
The motivations for the recent regionalization in Asia, as well as other regions
in the world, cannot be isolated from one another. It is a complex mixture of
factors. One of the reasons behind regionalism is the concern for security, which
is to ensure peace and stability. Confidence building can be enhanced through
economic cooperation within a region. The ASEAN and the Shanghai Cooperation
Organization (SCO) are regional organizations that seek strong security in Asia
through cooperation.
Nevertheless, economic motivations are arguably the main motivation behind
contemporary regionalization. By entering regional organizations, Asian states
may regain some control over flows of capital and enhance their bargaining
power against transnational economic actors such as investment groups or
transnational corporations. Aside from this, domestic companies may benefit
from belonging to a regional market big enough to allow them scale economies
while still being protected from global competition.