Globalisation is not important as in reality most international firms operate on a regional or local basis
Globalization has become one of the biggest issues in the economic world today. There are various definitions of globalization but the most accepted definition according to Holm and Sorensen is "globalization can be defined as the intensification of economic, political, social, and cultural relations across borders". In this sense, it involves more than the geographical extension of a range of phenomena and issues. It implies not only a significant intensification of global connectedness but also a consciousness of that intensification, "with a concomitant diminution in the significance of territorial boundaries" (Bretherton, 1996). Features of globalization in the 20th and 21st century include the advance of global financial markets, global trade, transnational business, international organizations, and new technologies. This process began after the Second World War, with the development of the international trade flows between countries.
Experts analyse global trade through trade between nations but the recent growth of regional trade led to rethink their logic. Globalization is surging across the planet; but ever local and regional integration has been so dynamic. Globalization and regionalization are often perceived as contradictory. Their existence is therefore a paradox that deserves to be examined in more detail. This assignment will first examine the characteristics of the current globalization. Secondly, the development of regional trade agreements will be discussed. Finally, the links between globalization and regionalization will be studied.
Characteristics of the current globalization
Since the end of the Second World War, globalization is a reality, as evidenced by the dramatic growth of trade (figure 1). Besides the fact that many developing countries contribute more actively, the present movement is different from the first wave of globalization (years 1870-1914) by the magnitude and speed of capital...