Convergence or Divergence Of the Asian Market: Is Regionalism Leading to Regionalisation?

Chris Baumann and Hamin
Macquarie University, Australia

Rosalie Tung
Simon Fraser University, Canada

Roxan Toll
GMI, Australia

INTRODUCTION

As a result of the Asian crisis in 1997-1998 and the Global Financial Crisis (GFC) in 2008-2009, there is increasing speculation that “Globalisation” may have stalled (Breman, 1998, James, 2001). There has always been a debate around globalisation’s true nature and magnitude. Friedman (2007) argued that the “world is flat”, suggesting that there are no more differences across countries, whereas, at the opposite end of the spectrum, Ghemawat (2007) argued that “the world isn’t flat”. Some have argued that globalisation has created “imbalance” (Breman, 1998) among nations, and the GFC was the zenith of speculation in financial and property markets (Baumann and Valentine, 2010). Possibly then a new form of post globalisation has emerged where the world is organised around regions such as Europe, North America and Asia, thus making a case for “regionalisation” (Rugman and Verbeke, 2004).