Globalization concepts and impacts

Globalization, regionalism, and nationalism do not necessarily work for or against one another. However, they are forces that are linked to one another in a number of ways.

Globalization is best described as the process of transformation of local or regional economies into a global economy (Bhagwati, 2004). In this light, citizens from areas around the world are unified into a single society and function as one. This process is a combination of economic, technological, socio-cultural and political forces. Globalization is often used to refer to economic globalization, that is, integration of national economies into the international economy through trade, foreign direct investment, capital flows, migration, and the spread of technology.

Nationalization involves taking an area's resources and economies and moving it to the ownership of a national government (Brym, 1986). Nationalization often describes private assets or local municipalities. Nationalization takes place for political and economic reasons. Many states believe that any means of production, distribution and exchange, should be owned by the state on behalf of the citizens of that state. Particularly in socialist areas, leaders believe that public ownership results in the people having complete democratic control over how wealth and power is controlled and shared.

It is widely believed that globalization promotes nationalism (Kacowitz, 1998). As expectations increase as a result of a global economy, states are forced to deal with and find solutions for the challenges brought about by globalization. Globalization can provide many opportunities for regional integration and for different areas to improve their national power resources. This can result in greater security and a greater economy.

Regionalism describes a political model that is centered on the needs and ideas of one particular region or group of regions (Brym, 1986). Regionalism aims to increase that region's influence and political power, either through movements for more or less autonomy from the nation as a whole. Regionalists often prefer loose confederations over a unitary state with a strong central government. Regionalists believe that strengthening a region's government and power results in efficiencies of scale to the region, promotes decentralization, and improves a region's competitive edge.

If globalization is considered a part of social relations, then it makes sense that regionalization would be considered a part of globalization (Kacowitz, 1998). Regional integration can help different economies become more competitive in the global market, this improving cooperation between different regions and opening regional economies. In this light, globalization is expressed through regionalism.

Regionalism can also be seen as a response to globalization. As different regions around the world start to share similar views and become cooperative with one another, regional loyalties and models become more accepted and promoted.

In some ways, globalization seems to drive regionalization. For example, globalization is widely blamed for diminishing the American dollar, which means that imports are no longer as attractive. While this is no so good for America, a long-term decline on the dollar will drive local suppliers to develop new capacities. In addition, as the price of oil and fuel rise due to transportation, local, pricier suppliers suddenly do not seem so expensive, as companies are starting to accept the real price that is paid for a good or service.