Measures of globalisation Flashcards
KOF index
Measures globalisation of countries for political (e.g. membership in international organisations + trade blocs like the EU, economic (flows of FDI, goods + services) + social (cultural proximity - like number of mcdonalds) indicators (scale 1-100) - 100 being most globalised.
AT kearney
measure of globalised cities by a London business - considers political, communication, tech.
GDP
the total value of goods/services produced by a country in a year
Negatives of using GDP as a measure of globalisation:
May be inaccurate as it doesnt include informal earnings/black market economies
GNI
Gross national income - the value of goods/services by a country + takes into account overseas earnings
PPP
Purchasing Power Parity - the expenditure of a country’s population + effects the cost of living.
Income per capita
Mean average income per person (income of a country by pop size)
Negatives of Income per capita as a measure of globalisation:
Can hide inequality - higher paid earners have a larger influence on GDP - so skew data
The 3 composite measures:
HDI
GII
Economic sector balance
HDI
Human development index - a measure of social development, takes into account:
- Life expectancy
- wealth (GDP per capita)
- Education (literacy levels + average number of years in education)
GII
Gender inequality index - measures female participation + treatment within society, considers:
- reproductive health (maternal mortality ratio, adolescent birth rates)
- empowerment (number of females in parliament)
- employment (labour force participation rates of women)
Ecomonic sector balance
- considers 4 main economic sectors: primary, secondary, tertiary, Quaternary - it describes the composition of a country’s industry.
(as a country develops, primary declines, secondary and tertiary become more important.)
