3.3 Degree of Globalisation

Question 1

3.3a Measuring the Degree of Globalisation

globalisation indicators

Answer 1

an indicator is a measure of an individual aspect (of globalisation), e.g. the amount of FDI

indices may be composite measures, combining several indicators:
each component indicator is expressed as a a percentage
component index values can then simply be added and the mean value calculated to give the overall index value

Question 2

3.3a Measuring the Degree of Globalisation

AT Kearney Index: indicators

Answer 2

a

Question 3

3.3a Measuring the Degree of Globalisation

KOF Index: indicators

Answer 3

composite index combining 24 indicators across three categories:

economic globalisation- measured by indicators such as cross-border trade, FDI, tariff rates and money flows

social globalisation- measured by international telephone calls, tourist flows, resident foreign population and access to foreign internet households with a TV set, and ‘global affinity’ (presence of international TNC retail outlets), international mail, import and export books

political globalisation- measured by foreign embassies in a country membership of international organisations, number of UN Peacekeeping missions participated in, trade and other agreements with foreign countries

Question 4

3.3a Measuring the Degree of Globalisation

AT Kearney Index: general

Answer 4

A

Question 5

3.3a Measuring the Degree of Globalisation

KOF Index: general

Answer 5

Each category of indicator (economic, political, social) is converted into an index value. This allows comparisons over time (showing economic globalisation rising faster than political or social globalisation since 19070)

The mean of three category indices is calculated to give the overall globalisation index

Question 6

3.3a Measuring the Degree of Globalisation

AT Kearney Index: results

Answer 6

a

Question 7

3.3a Measuring the Degree of Globalisation

KOF Index: results

Answer 7

Developed countries top the list, then emerging countries, then developing. This shows a positive correlation between globalisation and development

In 2016 there were only two non-European countries in the top 15 (Singapore and Canada)

The USA and BRICs have lower index value because the KOF Index measures international interactions