Measuring Globalisation EQ1

Question 1

What are the two ways of measuring globalisation?

Answer 1

1)KOF Index: the extent to which countries are linked to others. The more globalised the more links it will have
2)AT Kearny’s “Global Cities Index”: How globalised cities are

Question 2

What are the 3 different dimensions of the KOF index?

Answer 2

1)social globalisation (the spread of ideas information and people including tourism telephone traffic and migration) which has a 39% weight
2)Economic Globalisation (measured through trade and capital/FDI) which has a 37% weight
3)Political Globalisation (measured through the membership of international globalisations like the WTO) which has a 24% weight

Question 3

What are the strengths of the KOF index?(3)

Answer 3

1)it gives a holistic multidimensional approach with social, economic and political aspects using a weighting systems which balances each type
2)data is available from 1970 which allows from comparative analysis overtime and across countries
3)includes a wide range of globalisation data (24 variables in total)

Question 4

What are the disadvantages to the KOF index?

Answer 4

-informal economies are discounted
-the weighting system is subjective
-illegal immigrant are not included

Question 5

What are the five measures of the AT Kearny measure?

Answer 5

-Business Activity(capital/TNCs etc.)
-Human Capital( skills, knowledge that people have that can help develop the economy which can be measured via education for example)
-Information exchange (internet, social media etc.)
-cultural exchange (sports, museum etc.)
-political education ( embassies and events etc.)

Business activity and human capital are most heavily weighted with 30% while political engagement only carries 10%

Question 6

What are the strengths of the AT Kearny measure?

Answer 6

-uses a wide range of globalisation data (27 variable in total)
-uses a weighting system which balances each aspect
-allows you to look at a cities current globalisation rating and their future potential

Question 7

What are the disadvantages of the AT Kearny measure?

Answer 7

-cultural exchange can be difficult to measure
-the weighting system ratings can be subjective

Question 8

What are some factors that contributed to the fact that Ireland was the most globalised country according to the KOF in 2015?

Answer 8

-Ireland’s low 12.5% (compared to 19% in the Uk) corporate tax made it an attractive destination for TNCs to establish their subsidiaries in
-Ireland’s population is fluent in English, one of the most widely spoken languages globally, enhanced the country’s connectivity to global markets