The paper “ Why Has Regionalism Become Such a Popular Strategy to Cope with Globalization? ” is a brilliant example of the literature review on macro & microeconomics. Globalization is whereby world economies become increasingly integrated resulting in a global economy characterized by making of the global economic policy, via international agencies such as the world trade organization. Consequently, globalization can be perceived as an emerging global culture, whereby the populations of the world not only consume similar goods but also services. Mittelman (2000a, p. 190) regionalism just like globalization seems to have a vague meaning: a region is defined as not only a geographical unit but also as organized cooperation in a given field or a social system as well as acting as a subject with a unique identity.
From the economic perspective, Wyatt-Walter, (1998, p. 78), it is evident that regionalism has proven to be effective in assisting not only secure markets but also in providing economic growth via the establishment of regional trade agreements (RTAs). However, in globalization, institutions such as World Trade Organization and the International Monetary Fund, the existing agreements which bind the governments to liberate the markets, to a certain degree restrict their abilities in pursuing macroeconomic policies.
Nonetheless, Mayall (2000, p. 21) under the regional trade agreements, it is evident that economic policies remain not only consistent but also stable because the participating nations cannot violate them through-provoking sanctions from other members (Akira, 2000, p. 40). A good example is the North American Trade Agreement which has not only stabilized but also increased the economic and political policies of Mexico. Wyatt-Walter, (1998, p. 78), in his study however argued that global market systems enable huge amounts of capital to be reinvested and disinvested in a relatively short period.
The mentioned makes states lose control over economic development and exchanges and hence holds a reduced role in economic development.
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Mayall, J. 2000. Nationalism and International Society. Cambridge: Cambridge University Press.
Mittelman, J. H. 2000a. “Rethinking the “New Regionalism” in the Context of Globalization,” Global Governance 2: 189–213.
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Vinod K. A. & Fogarty, E.A. (2001). “Between Regionalism and Globalization: European Union Interregional Trade Strategies,”
Wyatt-Walter, A. (1998). “Regionalism, Globalization, and World Economic Order” in Louise Fawcett and Andrew Hurrell, eds., Regionalism in World Politics.Oxford: Oxford University Press. 74–121.