ch 1.6: globalization and regionalization Flashcards
GLOBALIZATION
- OPENNESS TO INTERNATIONAL ECONOMY
- BORDERLESS WORLD
- INTERCONNECTEDNESS
- INTEGRATION
- INNOVATION
is a process in which neighboring states enter into an agreement in order to upgrade cooperation through common institutions and rules:
Regional integration (regionalization)
focus for achieving broader socio-political and security objectives, as defined by national governments
Regional integration (regionalization)
“voluntarily mingle, merge and mix with their neighbors so as to lose the factual attributes of sovereignty while acquiring new techniques for resolving conflicts among themselves”
REGIONALIZATION
Globalisation
- Technology (Internet)
- Transport costs and speed of transport
- End of the Cold War
- Global problems (climate, migration)
- Liberalisation
this have often focused on removing barriers to free trade in the region, increasing the free movement of people, labour, goods, and capital across national borders, reducing the possibility of regional armed conflict and adopting cohesive regional stances on policy issues, such as the environment, climate change and migration
Regional integration (regionalization)
Regional integration has been organized either via?
(enumerate)
- supranational institutional structures
- or through intergovernmental decision-making,
- or a combination of both.
PROS OF GLOBALIZATION
- growth of foreign direct investment(FDI)
- the growing competition - increase in efficiency, productivity and competitiveness
- enhance the production of goods and services
- technological innovation
- developing countries become wealthier
- widespread availability of global goods, services, and ideas positively impacts the lifestyles of citizens
- more opportunities for international travel and tourism
- more opportunities to work abroad due to liberal immigrant laws and foreign worker programs
- internet, communication satellites, and wireless telephones, are also among the lifestyle benefit
- availability of foreign goods
CONS OF GLOBALIZATION
- environmental costs:
- globalization has increased the use of non renewable resources, it has also contributed to increased pollution and global warming - some countries find it difficult to hold onto their best skilled workers, who are attracted by higher wages elsewhere
- many of the gains have been going to the rich nations, creating inequalities and leading conflicts internationally
- the least developed nations have been growing at a slower rate than the rich nations these poor nations are thus becoming increasingly marginalized
- local economic crises in one nation could have regional or even global impact
PROS OF REGIONALIZATION
- the strengthening of trade integration in the region
- the creation of an appropriate enabling environment for private sector development
- the development of infrastructure programmes in support of economic growth and regional integration
- the development of strong public sector institutions and good governance;
- the reduction of social exclusion and the development of an inclusive civil society
- contribution to peace and security in the region
- the building of environment programmes at the regional level
- the strengthening of the region’s interaction with other regions of the world
CONS OF REGIONALIZATION
- most professionals are bound to move from their native countries to the country with better opportunities
- new laws can prevent countries from trading with others that do not belong to the economic union
- member countries may lose their sovereignty in certain matter
- common currency can lead to fiscal crises
- cultural centralization (which can result in the loss of unique cultures within a region)
- most regional integrations tend to increase barriers against all non member countries, resulting in the creation of trading blocs
