Global-ism: The Implications of Investment Screening Mechanisms on the Politics of Globalization

Abstract Investment Screening Mechanisms ( ISM s) have proliferated across advanced economies, transforming from a niche regulatory tool into a key instrument of geoeconomic strategy. While prior research has examined the causes behind this trend, the consequences of ISM s on foreign direct investment ( FDI ) flows and economic governance remain underexplored. This commentary engages with the ISM Restrictiveness Index presented by Faubert and Bencivelli at a 2024 Law & Geoeconomics workshop and extends the debate by analyzing the political implications of ISM s. It explores how ISM s challenge traditional models of International Political Economy, serve as tools for economic competition, and risk political capture. Additionally, ISM s are contextualized within the broader geoeconomic toolkit, reshaping globalization and state-market relations. As states recalibrate economic openness against security concerns, ISM s symbolize a broader shift toward strategic economic governance, raising critical questions about the future of global investment flows and the evolving political economy of globalization.