REGLOBALIZATION VS DEGLOBALIZATION: TRANSFORMATION OF INTERNATIONAL ECONOMIC RELATIONS IN CONDITIONS OF GEOPOLITICAL FRAGMENTATION

Abstract

The article examines the transformation of global economic relations in the context of growing geopolitical polarization and increasing tensions between major economic powers. The discussion on deglobalization versus reglobalization of the world economy is comprehensively analyzed, drawing on recent empirical evidence and theoretical frameworks. It is established that instead of complete deglobalization, a structural transformation of globalization is taking place through regionalization of trade, reconfiguration of supply chains, and formation of distinct geoeconomic blocs aligned with geopolitical interests. The main drivers of fragmentation are identified and analyzed in detail: escalating trade wars between major economies, extensive use of economic sanctions as foreign policy instruments, production reshoring and nearshoring trends, and the growing role of national security considerations in trade policy formulation. The economic consequences of fragmentation for global GDP and international trade are assessed using quantitative models and empirical data, revealing significant but uneven impacts across different regions and sectors. The study reveals that current changes represent not the end of globalization but its restructuring into a new architecture with stronger regional ties, shorter and more resilient supply chains, and greater emphasis on geopolitical considerations in trade relationships. This emerging multipolar economic order is characterized by the formation of competing economic blocs, increased emphasis on economic sovereignty, and selective decoupling in strategic sectors such as technology, semiconductors, and critical raw materials. The research identifies key risks including reduced economic efficiency, higher costs for consumers and businesses, and potential for increased international conflicts. Simultaneously, it highlights opportunities for regional integration, development of alternative trade routes, and acceleration of technological innovation. Strategic approaches for national economies to adapt to these new conditions of geoeconomic fragmentation are proposed, emphasizing flexibility, diversification, and strategic partnerships.