3.3 Scale of Globalisaton Flashcards
What is the KOF Index and who produces it
- measure of globalisaiton based on 24 indicators across three categories
- produced by Swiss Institute for Business Cycle Research
- overall score is calculated by the mean of each index
What are advantages of the KOF index
- allows comparisons
- considers wide range of data
- 122 countries
What are disadvantages of the KOF Index
- some indicators are outdated
- there is cultural biases in some of the indicators eg number of McDonalds
- ignores informal economy
- ignores environmental factors
What is the AT Kearney index and who produces it
- 12 indicators across 4 categories (economic integration, technological connectivity, personal contact and political engagement)
- produced annually by AT Kearney management consulting firm
- index calculated for each indicator on a scale 0-1
- some factors are weighted more than others eg FDI, internet usage
What are advantages of the AT Kearney index
- covers 96% of the worlds GDP
- covers 84% of the worlds population
What are the disadvantages the of AT Kearney index
- doesn’t include all countries, particularly poorer ones
What is the global soft power index
- measure of nations ability to influence the preferences and behaviours of other countries
- seven categories assessed by public opinion surveys and expert assessments (eg governance, education and sciences, media and communication)
What are advantages of the global soft power index
- wide range of factors
- measures all UN members
Who is ranked most globalised on each index
KOF - Switzerland
AT Kearny - USA
Global soft power - USA (China ranked 3rd)
What is outsourcing
When a company assigns part of production to another company
What is offshoring
Relocation of a part of a TNC to another country for cheaper land/labour
What is a global production network
When chains of connected suppliers and manufacturers are set up
What is glocalisation
The process of adapting brands and products to suit the local market conditions
Eg McDonald’s offers Halal burgers in India
How do TNCs accelerate globalisation
- offshoring and outsourcing create jobs in foreign countries and spread working cultures
- glocalisation allows culture to spread eg western fast food chains in Asia with adapted products
What are the physical and environmental reasons a country might be switched off to globalisation
- landlocked
- extreme climate
- topography
What are the political reasons a country might be switched off to globalisation
- ideologies
- conflict
- government limit movement into / out of the country eg North Korea
- unstable government
What are the economic reasons a country might be switched off to globalisation
- lack of investment into infrastructure and telecommunications
- high levels of government debt eg Senegal
- over dependency on one industry
- natural resource curse (^ and don’t diversify)
- closed economy
