Measuring globalisation

Question 1

What does the KOF index measure?

Answer 1

How globalised a country is

Question 2

What does the KOF index use to measure?

Answer 2

Economic globalisation
Social globalisation
Political globalisation
Then forms an average

Question 3

What does the KOF index show over time?

Answer 3

The changes in rates of globalisation in a variety of countries

Question 4

Why might the KOF index be useful for companies?

Answer 4

Businesses can invest in globalised areas

Question 5

What are some examples of social globalisation used in the KOF measurement?

Answer 5

Telephone traffic
Newspapers
Internet users (per 1000)
Number of major companies (Ikea, McDonalds)

Question 6

What are some examples of economic globalisation used in the KOF measurement?

Answer 6

FDI investments.
Trade (GDP)
Number of major companies.
International treaties

Question 7

What are some examples of political globalisation used for the KOF measurement?

Answer 7

FDI investments.
Number of embassies.
Membership of international organisations (e.g. WHO).
Participation in UN security council missions.
International treaties

Question 8

What percentage of the KOF index is made by social globalisation?

Answer 8

38%

Question 9

What percentage of the KOF index is made by economic globalisation?

Answer 9

36%

Question 10

What percentage of the KOF index is made by political globalisation?

Answer 10

26%

Question 11

What are the top 3 countries of the KOF index?

Answer 11

Switzerland (91.17)
Netherlands (90.97)
Belgium (90.5)

Question 12

Why is Switzerland at the top of the KOF index?

Answer 12

It is in central Europe including between France and Germany.
They had the swiss banks, where companies could invest or take money with no questions asked (more gov bonds).

Question 13

Why is Belgium the third highest country on the KOF index?

Answer 13

Belgium has the EU headquarters (political).

Question 14

Why are smaller countries typically higher up the KOF index?

Answer 14

Trading relations with neighbouring countries.

Question 15

Where is China on the KOF index, and why?

Answer 15

79th.
Despite its TNCs, its economic and social globalisation is much lower than its political

Question 16

Where is the USA on the KOF index, and why?

Answer 16

23rd.
Trade is usually between states rather than international due to limited borders. Therefore, less trade or movement of people