THE SHIFT FROM GLOBALIZATION TO REGIONALIZATION: IMPLICATIONS FOR GLOBAL INVESTMENT STRATEGIES
Keywords:
Globalization, Regionalization, Foreign Direct Investment (FDI), Regional economic blocs, Supply chain localization, Portfolio diversification, Geopolitical risk, Institutional investors, Multinational corporations, Macroeconomic data, MSCI regional indices, Sharpe ratio, Market volatility, Dynamic Conditional Correlation (DCC-GARCH), Greenfield investment, Intra-regional trade, Protectionism, Friend-shoring, De-risking, Resilience investing, Asset allocation, Risk management, Regional ETFs, Regional trade agreements, RCEP, USMCA, European Union (EU), Supply chain resilience, Apple India production, Tesla China strategy, Emerging markets, Decoupling, Multipolar economic order, Local currency exposure, Scenario planning, Geopolitical tensions, Fragmented global economyAbstract
This thesis investigates the ongoing transformation of the global economic landscape from globalization to regionalization and its implications for investors. While globalization once drove capital, trade, and supply chain integration across borders, recent geopolitical, economic, and technological shifts have spurred a move toward regional economic blocs and localized production. Using a mixed-methods approach combining macroeconomic data analysis and investor sentiment surveys, this study aims to evaluate the risks and opportunities regionalization presents for portfolio diversification, foreign direct investment (FDI), and multinational corporate strategies. The findings seek to guide institutional and private investors in adapting to an increasingly fragmented global economy.
References
Friedman, T. L. (2005). *The World is Flat: A Brief History of the Twenty-first Century*. Farrar, Straus and Giroux.
2. Hettne, B., & Söderbaum, F. (2000). *Theorising the Rise of Regionness*. *New Political Economy*, 5(3), 457–472. https://doi.org/10.1080/135634600750034857
3. Markowitz, H. M. (1952). *Portfolio Selection*. *The Journal of Finance*, 7(1), 77–91. https://doi.org/10.2307/2975974
4. Baldwin, R. (2016). *The Great Convergence: Information Technology and the New Globalization*. Harvard University Press.
5. UNCTAD (United Nations Conference on Trade and Development). (Various years). *World Investment Reports*. Retrieved from [https://unctad.org/topic/investment/world-investment-report](https://unctad.org/topic/investment/world-investment-report)
6. International Monetary Fund (IMF). (n.d.). *International Financial Statistics FDI flows*. Retrieved from [https://www.imf.org/en/Data](https://www.imf.org/en/Data)
7. MSCI Inc. (n.d.). *MSCI Regional Market Indices*. Retrieved from [https://www.msci.com/our-solutions/indexes](https://www.msci.com/our-solutions/indexes)
8. World Trade Organization (WTO). (n.d.). *Trade Policy Reviews and Reports*. Retrieved from [https://www.wto.org/](https://www.wto.org/)
9. Regional Comprehensive Economic Partnership (RCEP). (2020). *RCEP Agreement Documents*. Retrieved from [https://rcepsec.org/](https://rcepsec.org/)
10. Office of the United States Trade Representative (USTR). (2020). *USMCA Agreement Details*. Retrieved from [https://ustr.gov/trade-agreements/free-trade-
agreements/united-states-mexico-canada-agreement](https://ustr.gov/trade-agreements/free-trade-agreements/united-states-mexico-canada-agreement)
11. European Commission. (2023). *EU Trade and Investment Statistics*. Retrieved from [https://ec.europa.eu/trade/](https://ec.europa.eu/trade/)
12. U.S. Department of the Treasury. (2022). *Remarks on Economic Friend-shoring and Resilience Strategies*. Retrieved from [https://home.treasury.gov](https://home.treasury.gov)
13. CNBC. (2023). *Apple to Move Supply Chain to India Amid Geopolitical Tensions*. Retrieved from [https://www.cnbc.com/](https://www.cnbc.com/)
14. Bloomberg. (2022). *Tesla’s Local Manufacturing Push in China Shows Regional Shift*. Retrieved from [https://www.bloomberg.com/](https://www.bloomberg.com/)
15. Reuters15. (2021). *Friend-shoring and Global Supply Chains: How the Pandemic Changed Investment Logic*. Retrieved from [https://www.reuters.com/](https://www.reuters.com/)
16. The Wall Street Journal16. (2023). *Globalization's Decline and the Rise of Regional Investment Strategies*. Retrieved from [https://www.wsj.com/](https://www.wsj.com/)
