Deglobalisation or Reglobalisation? A Macroperspective on the Re-Emergence of the Global Economy

Recent geopolitical and economic shocks, such as the rise of protectionist trade policies, Brexit, and the Russia-Ukraine conflict, have shaken the foundation of globalisation. While often invisible, some borders have become more porous, while others have become less so. The deglobalisation hypothesis is gaining traction in response to these shocks. This paper attempts to debunk this hypothesis by proposing a counterbalancing reglobalisation hypothesis. Rather than representing a decline in globalisation, the global economy is transforming towards a more strategically realigned system. Through an analysis of trends in trade flows, foreign direct investment, and migration, this paper argues that the global economy is undergoing a structural adjustment, marked by increasing regionalisation and technological advancement. The paper identifies a shift in the global economic order and a transfer of political power from the West to the East driven by political realignment, relocation of trade and investment, restrategising, and remigration. It concludes that reglobalisation offers a more comprehensive framework for understanding regional transformations and their role in shaping the future of globalisation. Recommendations for future research are offered.